ARC Energy to Spud Dongara 35 Appraisal Well

ARC Energy will drill the oil appraisal well, Dongara 35, located in the onshore Perth Basin Production License L2. The well is expected to spud on December 24th.

Dongara 35 is being drilled to investigate the location and producibility of the oil leg of the Dongara Field on the northern edge of the field.

The Dongara Field lies 360 kilometers north of Perth and some 8 kms east of the town of Dongara. ARC owns 100% of the Field which was discovered in 1966 by WAPET. It is a world class field with original reserves in excess of 480 PJ of recoverable gas and some 60 million barrels of oil in place. Current production is some 10 to 12 TJ of gas per day and minor amounts of oil and condensate.

Due to the fact that the existence of the oil leg was not recognised until a commitment to produce the gas had been made, the production technique used to produce the field has "smeared" the oil through the reservoir and made a large amount of it unrecoverable. Due to the low oil recoveries, this form of production would not be either allowable or economically justified in the modern regulatory and technical environment.

Technical environment. Recent technical work including the acquisition of the Denison 3D seismic survey over the northern part of the field has identified areas where there is interpreted to be potential to recover the remaining oil reserves. Dongara 35 will test that potential in the northern area of the field.

ARC Energy is operator of Dongara 35 with a 100% interest.