Centella 1 Initial Test Report

ARC Energy reports that the Centella 1 Well has been perforated over a 13.3 meter interval at the top of the 18.5 meter oil column in the Dongara Sandstone reservoir and an initial clean up flow undertaken. The clean up flow period resulted in an oil flow into the well with approximately 1500 meters of oil in the tubing. There was no associated gas and the oil gravity was estimated at 39o API. The lack of gas and the regional reservoir pressure reduction means the well is unlikely to flow to surface but is likely to be able to be produced on pump.

The wellhead pressure is continuing to build and more wireline work will be undertaken shortly to establish any change in fluid level and to take a larger oil sample for more detailed analysis.

Further tests are now planned over the next few weeks to establish the production potential of the well, and to aid in the estimation of reserves.

The Centella 1 well is located 6.5 kilometers east of the Hovea Production Facility and 1.3 kilometers northwest of the Mondarra Gasfield. Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) are:

  • ARC Energy Limited - 50% (Operator)
  • Origin Energy Developments Pty Ltd - 50% (a wholly owned subsidiary of Origin Energy Limited)

  • Managing Directors comments:

    "This is the fifth exploration well to be drilled in the 3D seismic grid, the fifth to establish the presence of hydrocarbons and the fourth to be productive. Although it will be necessary to wait for the results of further production tests for estimates of the potential long term flow rates and reserves volume, early indications are that the field is of commercial size, and we will be moving to develop it as soon as practicable.

    It is very encouraging to find oil at Centella, as the location was interpreted to be in the gas prone portion of the license. This discovery has the potential to now open up additional targets in the area that may also contain oil."