has obtained dog stock status, page-9

Today's News included .....

Highlights of the open briefing include:

Canning Basin exploration:

• Next well in the program, Yulleroo 2, appraising an existing wet gas discovery to spud later this week (ARC
100%)

• Valhalla 1 encountered significant gas and oil zones over a gross interval exceeding 200 meters (ARC 100%)

• Stokes Bay (ARC 38.95%) and Valhalla testing program being finalised for commencement of dry season
operations in May 2008
Perth Basin drilling and exploration program (ARC 30%):

• Lilac 1 oil exploration well to spud early February

• Frankland 2 gas field appraisal well to follow Lilac

• Option to drill Dunsborough 2 oil field appraisal well likely to be exercised

• 3D seismic survey over the most prospective trend starting today

Bass Basin exploration and appraisal program:

• T44/P 3D seismic program almost completed
• Appraisal program for BassGas project underway

Anzon merger:
• Documentation sent to Anzon shareholders
• Shareholder Scheme meetings on 29 January
• Independent expert says merger is fair and reasonable
• Strong interest from institutional investors in Sale Facility shares

ARC valuation:

• Broker reports target prices from $1.66 to $2.00
• Latest broker report Base Case DCF value of $1.84 and 12 month target of $2.50