With the bulk of its assets located in the blossoming Perth Basin, ARC has been partner to a string of successful wells which have lead to a 2% increase in oil production for the quarter and a 28% increase in gas sales.

The company’s first completed well of the July quarter, Agonis-1, has not been so successful as, although the well intersected hydrocarbon columns in both the primary objective Dongara Sandstone and in the secondary objective Wagina Sandstone, the reservoirs have low permeability and the well is unlikely to flow at commercial rates.

ARC will suspended the well for possible future re-entry and evaluation of the zones using drilling techniques more appropriate for low permeability reservoirs.

However, by the end of the previous recording period the company’s key Hovea Production Facility will have produced 2,800,000 barrels of oil.

Additionally ARC will be an integral member of the first gas development in the Perth Basin since 1990 at Xyris-1, after the well perforated a 24m interval at the top of the Dongara Sandstone reservoir and running a clean up flow at an estimated 15.5 million cubic feet per day.

Finances are performing as strongly as production with sales proceeds up 156% for the year to $66.4 million, and net cash generated for the year totalled $18.7 million compared to last year’s $5.2 million decrease

Overall ARC is on track for a record full year profit as full development of the Jingemia oil field, installation of artificial lift at Hovea and the Xyris and Tarantula gas developments continue to boost production and revenue.