Origin Reports Drakea 1 Spudding

Origin Energy Limited on Monday announced that the exploration well Drakea 1, operated by Arc Energy and located in the onshore Perth Basin Production License L1, commenced drilling at 6 a.m. WST on May 11, 2007, using the Century 18 drilling rig.

Drakea 1 is located approximately 19 kilometers south-southeast of the township of Dongara. The primary target is the Early to Late Permian section.

Drakea 1 is designed to intersect the High Cliff Sandstone near the structural crest of the prospect. The well is being drilled directionally and is prognosed to intersect the top of the High Cliff Sandstone at 2,589 meters measured depth, approximately 495 meters north-northeast of the surface location.

Surface coordinates for the Drakea 1 drilling location are as follows:

--Latitude: 29 degrees 24' 17.79" S
--Longitude: 115 degrees 03' 40.47" E

The well has a planned total depth of approximately 2,839 meters measured depth and is expected to take 16 days to drill and complete.

Participants in L1 and Drakea 1 are:

--Origin Energy Developments Pty Ltd, 50.0%
--Arc Energy Ltd (Operator) 50.0%

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