Drilling Delayed at Corybas 1 Gas Well

ARC Energy

ARC Energy reports that operations at the Corybas 1 well were halted while waiting on rig repairs. Casing had been set at 2,425 meters prior to the failure of the carrier/drawworks engine on CDL Rig 11.

It is expected that the rig repairs by Century Drilling will take at least another two days, prior to drilling out of the 178 mm casing to the first core point in the Irwin River Coal Measures.

The well is operated by ARC and located in the onshore Perth Basin Production License L2. The surface location of the well is approximately 14 kilometers east northeast of the township of Dongara and 250 meters southeast of the Central Yardarino 1 well. The proposed total depth of the well is 2,670 meters measured depth.

Corybas 1 will evaluate the potential of the upper High Cliff Sandstone which was not penetrated in Central Yardarino 1 but forms the productive horizon in Hovea 2, where it flowed gas at 13.5 million cubic feet per day. The well will also provide information on the Irwin River Coal Measures known to be gas bearing in the area but generally of poor reservoir quality.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) and Corybas 1 are ARC Energy as operator with 50% and Origin Energy with the remaining 50%.