Dump they may Sushi but they might just be making a big mistake....

Dump they may Sushi but they might just be making a big mistake. Arc could well go from being one of the worst '06 performers to one of '07's best. Here's just a few reasons why:

* recent development well success at J8, H12 & E6 has increased daily production by ~ 5000 BOPD @ $60 net that's around $50m + p.a. extra revenue for Arc's share on top of what they are already producing. With around ~ $60m in the bank now they are going to be swimming in an even bigger sea of cash.

* The are searching for 100 million barrels of oil and 100 PJ of gas that can be quickly bought into production so is worth about $2 billion in ground if proven. 10% success rate would send the shares north of $2. Success at Drakea 1, to be spudded in a few days time alone could do this to the share price plus you get Sugarloaf testing and gas develpment wells plus Yemen drilling in the next month or so.

* Any sniff of exploration success would bring back the exploration premium that has completely dissapeared from the share price but failure would either bring on a bid or a healthy dividend.

DYOR but I hold with a view to acumulating more.