ARC Energy Says Dongara 32 has Strong Cleanup Flow

ARC Energy reports that an initial cleanup flow of the Arranoo reservoir in the Dongara 32 well has flowed gas at estimated rates in excess of 6 million cubic feet per day (mmcfd). This initial cleanup flow was undertaken without a separator, and consequently, flow rates are unable to be precisely determined. However, the well was flowed at varying pressures and rates with the calculated rate on a 32/64 inch (12.7mm) choke being 6.44 mmcfd with a well head pressure of approximately 1000 psi. The well was still unloading some fluid at the completion of the flow period. The Arranoo reservoir is located at approximately 1,500 meters depth between the upper and lower Kockatea shale above the Dongara Sandstone reservoir and the pool extends across the central part of the Dongara gas field. This is an extremely encouraging result and is comparable to and somewhat better than the initial flow achieved at the Dongara 31 well. Both Dongara 32 and Dongara 31 will now be connected to the nearby Dongara 24 flowline and produced to the Dongara gas processing plant for a test period to acquire reservoir and production data. It is expected to take approximately one week for the test to commence. It is then intended to produce the Dongara Field at an appropriate level that will ensure long term supply to ARC's existing customers. Long term flow rates are required to be able to accurately determine the potential reserves of the Arranoo pool accessed by Dongara 31 and Dongara 32. There is also potential for more wells to be drilled to access additional reserves of both gas and oil in the Arranoo pool and in the underlying Dongara Sandstone pool and the potential for drilling further wells at Dongara is currently being considered.