ARC Energy Spuds Agonis 1 in Perth Basin

ARC Energy's gas exploration well, Agonis 1, located in the onshore Perth Basin Production License L1, was spud on July 1, 2004 using the Century 11 drilling rig.

The well is located approximately 5.5 kilometers east of the Hovea Production Facility and approximately midway between the Xyris and Mondarra gas fields. The well is being drilled directionally to avoid clearing native vegetation at the vertical well location. The target bottom hole location is approximately 485 meters southeast of the surface location.

The depth to the prognosed top of the primary objective Dongara Sandstone is approximately 2,800 meters measured depth. The proposed total depth of the well is 2,925 meters measured depth and it is expected to take 20 days to drill on a dry hole basis.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) and Agonis 1 are:

Origin Energy 50%
ARC Energy NL (Operator) 50%