The Perth-based mid-cap achieved a total quarterly output of 516,686 barrels of oil equivalent – about 57,000bbl less than in the December quarter.

Oil production of 312,076bbl was on par with the previous period, while natural gas output was 1295 terajoules, down from 1574TJ.

Oil sales revenue fell only 1% to $22.75 million, despite Cliff Head and Hovea field production being shut-in for repairs and maintenance.

Gas sales revenue for the quarter was $6.28 million, down by $520,000, due to natural field decline.

“Gas produced is expected to increase in the June quarter as the recent Dongara-36 and -37 development wells have now been tied in to the production facilities,” the company said.

Arc said it expected to achieve 1.15 million barrels of oil equivalent for the 2006-07 financial year – in line with the previous 12-month period.

By the next quarter, Arc said it aims to have simultaneous exploration drilling occurring in both the onshore and offshore Perth Basin and in Yemen.