ARC Energy Completes Senecio 2 Sidetrack Appraisal Well

ARC Energy Limited reports that the Senecio 2 well, located in the onshore Perth Basin Production Licence L2, was drilled to a total depth of 2863 meters measured depth after cutting a window in the 178 mm (7 inch) casing. A completion string has been run and a cleanup flow undertaken with the rig on location.

During the cleanup flow period the well flowed gas to surface at varying pressures and rates. No separator was utilized for the cleanup flow and consequently flow rates are unable to be accurately determined. Gas flow rates ranging from 1.6 to 3.7 million standard cubic feet per day were recorded from the Dongara Sandstone during a planned 6 hour clean-up flow period.

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

The flow rates obtained are broadly similar to the flow rates obtained for Senecio 1. The use of a non-invasive drilling fluid does not appear to have resulted in a substantial increase in flow rate from the well. However, it has confirmed the presence and producibility of what could be substantial volumes of gas in place. ARC Energy will now review the data, including a possible longer term production test, to plan the forward program for the well.

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