ARC Energy Spuds Jingemia 7

ARC Energy has commenced drilling the appraisal well Jingemia 7 located in the onshore Perth Basin Production License using the Century 11 drilling rig.

The Jingemia 7 well is being drilled as a deviated well from a surface location some 2.5 kilometers to the northwest of the Jingemia Production Facility (JPF). Subsurface target location is some 335 meters to the southeast of the surface location. The bottom hole location is close to the mapped northern limit of the extension of the Jingemia Field into the L2 license.

The depth to the prognosed top of the primary objective Dongara Sandstone is approximately 2,470 meters measured depth. The proposed total depth of the well is 2,520 meters measured depth and it is expected to take 11 days to drill to the top of the Dongara Sandstone.

The aim of the well is to help define the extent of the Jingemia Field in the L2 license by gathering new structural and stratigraphic information. This will also aid unitization discussions between L2 and L14 joint ventures towards an efficient and timely development of the Jingemia Field.

The well has been designed to be ultimately completed as a water injector in either the original well bore or sidetracked to a more optimal injection location. A decision on the final program will be made once the reservoir has been intersected and the extent of the oil column has been determined.

Managing Director's comments:

"The Jingemia 7 well is the first well to be drilled on the results of the recently completed Denison 3D seismic data. If it confirms the interpreted extent of the Jingemia Field and the consequent upgrade of reserves that would result, this would be an excellent start to the program."

Participants in Jingemia 7 and L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) are ARC Energy as operator with 50% and Origin Energy with the remaining 50%.


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