ARC Energy Says Denison 3D Seismic Survey has Restarted

ARC Energy reports that acquisition of the Denison 3D seismic survey with the full field crew re-commenced on January 8, 2005 following the mobilization of the crew after the holiday season break.

The crew undertook acquisition tests in late December 2004. The test data was processed during the holiday season by Veritas in Singapore and the results are being used to optimize the acquisition and processing parameters for the main survey. Prior to the holiday break the surveyors and line preparation crews had completed line preparation of some 800 km of a total survey length of 2,990 kms. These crews have now also been remobilized.

The survey is being acquired over the highly prospective oil trend on the western side of the L1/L2 license and over the adjacent L14 license. It will cover the Jingemia and Eremia fields and the leads and prospects identified from the existing sparse 2D seismic data and gravity surveys.

It is intended to "fast track" the processing of the central portion of the survey over the Eremia and Jingemia oil fields, and the prospective structures adjacent to these fields, and to commence drilling on these areas as early as practicable.

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