A couple of pages that may help (or may not!), the first one being engine numbers from 1926 t0 1965, might help identify the engine.
http://www.australian-ariel-register.com/documents/Ariel_engine_and_frame_prefix_numbers.pdfThe second one the web site of the Australian Ariel register, someone on there may have some more info.
http://www.australian-ariel-register.com/It would be worth trying to find out some history Richard just in case is it something rare, you never know.
Whats it worth, if its cheap then buy it anyway !
I dont know for sure but if your frame has a 350cc in it already I would say there is a very good chance the 500 would go straight in.