ARC Energy Says Bunjong 1 Exploration Well Disappointing

ARC Energy reports that the Bunjong 1 is drilling ahead. The well has reached a current measured depth of 2160 meters. No significant hydrocarbon shows have been observed while drilling the primary and secondary reservoir objectives encountered to date. Wireline logging and pressure sampling will be conducted to provide additional information after the well reaches total depth.

Managing Director's comments:
"While from what we have seen so far this appears to be a disappointing result, Bunjong 1 is only the third well drilled in the recent oil exploration program targeting conventional structural traps. Of the other two wells, the Evandra 1 well was an oil discovery and will shortly be put on test production. We will now review the results of Bartsia 1 and Bunjong 1 to see what implications these have for the focus of the drilling program going forward. At the completion of Bunjong 1 Century Rig 11 will be moved to the Dongara 35 location which is an appraisal well targeting the oil leg in ARC's 100% owned Dongara Field."

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