net profit down 55pc to 15.5m for year

Such a disappointing stock:

Sep 13: (RWE Australian Business News) -
ARC Energy Ltd (ASX code: ARQ) net profit fell 55 per cent to $15.46
million in the year ended June 30.
This was primarily as a result of non-cash accounting write-offs
of exploration and development assets and higher amortisation and
depreciation costs.
The higher write-offs were taken after the board recognised the
industry trend of expensing exploration costs earlier in the cycle than
has been the previous practice.
As a consequence of this review, $34.1 million in exploration
and development assets were expensed for the year.
Revenue rose 11 per cent to a record $118.49 million.
Average price received per barrel of oil increased from $A58.55
to $A80.17.
Directors noted EBITDAW increased 12 per cent to a total of
$81.3 million, reflecting improved underlying profitability prior to
non-cash accounting adjustments.
Total depreciation and amortisation expenditure rose 81 per cent
to $30.5 million during the year.
The additional interests in Jingemia and Cliff Head, acquired as
part of the merger with Voyager Energy Ltd, a 51 per cent increase in
gas production and higher capital costs relating to the Hovea oilfield
were the main causes of the increased non-cash expenses.

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Managing director Mr Eric Streitberg said, "This is another
strong result for the company which highlights the value and
profitability of our underlying business.
"We have a large number of exploration and development wells
planned for this year, which should see our production steady to
increasing.
"Although we didn't replace this year's production with new
reserves last year, we are confident that with the number of wells we
have planned we will have success in our reserves replacement program
this year.
"We will also have the excitement of seeing some large upside
exploration targets being drilled on all our areas."
The company has yet to pay a dividend.