ARC Energy Completes Dongara 34 Well for Production Testing

ARC Energy Limited reports that the gas development well, Dongara 34 STI, located in the Dongara Field in onshore Perth Basin Production License L2 has been drilled to total depth and is currently being completed for production testing. The well was drilled using Century Rig 11 to a total depth of 1780 meters measured depth in 216mm hole after setting a 178mm liner above the main objective Dongara Sandstone. The well has taken additional time to complete as drilling problems in the initial well bore required a plug back and sidetrack. No problems were encountered in the re-drill.

The reservoir section was encountered on prognosis and is 34 meters updip from Dongara-12, which was the previous high well in the North Block of the Dongara Field.

Rig 11 will now be moved to drill Dongara 33 which is a further Arranoo Sandstone development well.

Executive Director's comment:

"The completion of the Dongara 34 well will allow us to produce the remaining reserves of gas in the Dongara Sandstone pool in the North Block of the Dongara Field. The surface location of the well is adjacent to the Dongara 24 and Dongara 31/32 wells which will allow its early production to the Dongara plant. The Dongara 33 well will substantially complete the development program of the gas reserves of the Arranoo Pool. The rig program from that point will include oil exploration and development, and appraisal of the Elegans gas pool. The order of drilling of the wells will depend on joint venture and regulatory approvals and the completion of technical evaluation of the Denison 3D seismic data."

ARC Energy holds a 100% interest in Dongara 34.