Australia's AWE to buy Arc Energy for A$508 million

PERTH, April 24 (Reuters) - Oil and gas producer Australian Worldwide Exploration Ltd (AWE.AX: Quote, Profile, Research, Stock Buzz)(AWE) is proposing to buy oil firm Arc Energy Ltd (ARQ.AX: Quote, Profile, Research, Stock Buzz) for A$508 million ($479 million) in a cash and share deal, a source familiar with negotiations said on Thursday.

"Its a cash and share deal which will value Arc at about A$1.58 a share," said the source who declined to be identified because he was not authorised to speak on the matter.

Shares in AWE and Arc Energy were placed on trading halt on Thursday ahead of an announcement about a proposed transaction. (Reporting by Fayen Wong)