FInDIng DEvELOPMEnT AnD ACQUISITIOn COSTS  FD&A Costs – CoMpAnY InteRest Prior to acquisitions, ARC’ F&D costs were $6.47 per boe and $9.50 per boe for P+P and proved  reserves, respectively in 2010, excluding FDC. The lo w F&D costs are attributed to the high quality of  ARC’s property portfolio, excellent results from ARC’ s development program and strong reserve growth  particularly in the Dawson and Ante Creek areas. Including acquisitions, ARC’s 2010 FD&A costs excluding FDC were $9.21 per boe of P+P and  $13.31 per boe of proved reserves while FD&A costs including FDC were $14.23 per boe and $18.15 per boe,  respectively for P+P and proved reserves. The three year average FD&A costs were $8.60 per boe for P+P  reserves and $12.76 per boe for total proved exc luding FDC. The following table illustrates FD&A costs excluding and including FDC. (1) Additional information on reserves is available in the Annual information form and in the february 10, 2011 news release titled “Arc  resources ltd. 2010 year-end reserves increase by 29 per cent”. (2) includes $24.6 million pertaining to leasehold cash on new corporate office space. ARC ResouRCes AnnuAl  report 26 10 30 25 20 15 10 5 0 HISTORICAL FD&A COSTS 06 07 08 09 10 AnnUAL FD&A (WITH FDC)  AnnUAL FD&A (EXCLUDIng FDC) 3 YR AvERAgE FD&A COSTS (EXCLUDIng FDC) 3 YR AvERAgE FD&A COSTS (InCLUDIng FDC) KEY RESERvE InFORMATIOn PROvED PLUS PROBABLE RESERvES TOP PROPERTIES BY RESERvES 2010 YEAR-EnD PROvED PLUS PROBABLE RESERvES mmboe mmboe gAS LIQUIDS 500 450 400 350 300 250 200 150 100 50 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 gAS LIQUIDS 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Dawson Dawson West Redwater north Pembina CU Hatton Berrymoor CU Midale Unit Antecreek Parkland Weyburn Unit Jenner Lougheed MIPA Brooks Crane Lake eXcluding fdc (1) including fdc (1) proVed + proVed + $tHousAnds, eXcept per Boe AMounts  proVed  proBABle  proVed  proBABle E&D Capital Expenditures  $590,914  $590,914  $590,914  $590,914 E&D Expenditures - Change in FDC  –  –  280,927  467,792 Total E&D Capital Expenditures (2) 590,914 590,914 871,841 1,058,706 net Acquisition Capital  657,236  657,236  657,236  657,236 net Acquisitions – Change in FDC  –  –  172,974  211,507 net Acquisition Capital Expenditures  657,236  657,236  830,210  868,743 total capital including net Acquisitions   $1,248,150  $1,248,150  $1,702,051  $1,927,449 E&D Reserve Additions  62,188  91,294  62,188  91,294 net Acquisition Reserve Additions  31,608  44,163  31,608  44,163 reserve Additions including net Acquisitions  93,796  135,457  93,796  135,457 F&D Costs – Current Year  $9.50  $6.47  $14.02  $11.60 F&D Costs – Three Year Average  $10.28  $6.93  $15.45  $12.52 net Acquisition Cost – Current Year  $20.79  $14.88  $26.27  $19.67 net Acquisition Cost – Three Year Average  $21.86  $14.77  $27.20  $19.67 fd&A costs – current year  $13.31  $9.21  $18.15  $14.23 fd&A costs – three year Average  $12.76  $8.60  $17.96  $14.05