Xyris 1 Well Discovers Gas

ARC Energy says the Xyris 1 located onshore Australia has reach a total depth of 2,795 meters and wireline logs have been run. Preparations are now underway to run casing.

Initial wireline log interpretation has indicated the well contains a potentially significant gas column in the primary objective Dongara Sandstone section. Hole conditions have however prevented the acquisition of wireline pressure data required to definitively evaluate the extent and quality of the net gas pay. These results will be obtained over the next couple of days if hole conditions permit. If it is not possible to obtain wireline pressure data, the well will be cased and production testing will be undertaken as soon as possible to obtain reserves, deliverability and gas composition data.

The Xyris 1 well is located 6.5 kilometers east of the Hovea Production Facility and 1.2 kilometers northwest of the Mondarra Gasfield.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) and Xyris 1 are ARC Energy Limited as operator with 50% and Origin Energy with the remaining 50%.

At the completion of Xyris 1, the Century 11 rig is expected to drill the Jingemia 4 oil development/appraisal well in the EP 413 (Jingemia) Permit."