ARC Energy Spuds Hakia 2 Gas Well

ARC Energy reports that the gas exploration and appraisal well Hakia 2, operated by ARC and located in the onshore Perth Basin Production License L2, has been spud by the Century 11 rig.

The surface location is approximately 15 kilometers east northeast of the township of Dongara and 1.8 kilometers south of the Hakia 1 well. Hakia 1 was drilled by ARC in 1999 and intersected a hydrocarbon column, interpreted to be gas, over a maximum 13 meters. The well flowed gas on drill stem test at 0.5 million cubic feet per day and was subsequently abandoned.

Hakia 2 will evaluate the potential of the Dongara Sandstone in a location mapped as approximately 35m updip of Hakia 1. The well is intended to be drilled to the High Cliff Sandstone to allow evaluation of this reservoir and the Irwin River Coal Measures. The upper Irwin River Coal Measures is gas bearing at Hakia 1 but displays generally poor reservoir quality. Better reservoir quality is predicted in the lower Irwin River Coal Measures (not intersected at Hakia 1) as seen in Corybas 1 where initial flows of up to 2.5 million cubic feet per day were recorded on production test before declining.

The proposed total depth of Hakia 2 is 2,900 meters measured depth and it is expected to take 15 days to drill on a dry hole basis.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) and Hakia 2 are ARC Energy as operator with 50% and Origin Energy with the remaining 50%.


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