ARC Energy Completes Dongara 32/Arranoo Appraisal Well

ARC Energy reports that drilling and completion of the oil and gas appraisal well Dongara 32, operated by ARC and located in the Dongara Field in onshore Perth Basin Production License L2 has been completed. The well was drilled using Century Rig 11, to a total depth of 1,748 meters in 152 mm (6") hole after setting a 178 mm (7") liner above the main objective Arranoo Sandstone at 1,576 m measured depth at an inclination of approximately 51o. The reservoir section was encountered approximately 4 meters high to prognosis with good hydrocarbon shows.

A single lateral bore was then drilled from the main bore from 1610 meters to 1703 meters measured depth. The two well bores had a separation of approximately 78 meters at total depth. The well was then completed with 73 mm (2 7/8") production tubing.

The current operation is moving the rig off location prior to conducting a short term production test. It is then intended to conduct a long term flow test through the Dongara plant as soon as practicable.

The rig has been released to Roc Oil for the drilling of the Cliff Head onshore water source well. It is expected that this operation will take approximately 14 days including rig moves. ARC has recommended to the L1/L2 joint venture that the next well after the Roc well is Corybas 1, a gas exploration/appraisal well located to the north of the Yardarino gasfield.

Managing Director's comment:
"The completion of the Dongara 32 well with two lateral well bores is another success for the ARC drilling team and is very important for ARC in that the company has 100% of the production in contrast to the other recent gas discoveries and developments where ARC is a 50% partner.

Long term flow testing is required to be able to accurately determine the potential reserves of the Arranoo pool accessed by Dongara 32, but it is anticipated that the well will provide additional deliverability for both ARC's existing customers and for peaking supply to the southwest of Western Australia during the high demand summer months.

The results of Dongara 31 and 32 have confirmed the gas and oil reserves of the Arranoo pool and the structural results have also confirmed the potential for an additional well to access the remaining Dongara Sandstone gas reserves in the north block of the main Dongara Field."