ARC Energy Spuds Snottygobble 1 Gas Well

ARC Energy has spud the Snottygobble 1 gas exploration well. The well is located in the onshore Perth Basin in Production License L1. The objective for Snottygobble 1 is the Dongara Sandstone which is the producing reservoir for the nearby Mondarra, Apium and Xyris Gasfields.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) are ARC Energy as operator with 50%; and Origin Energy with the remaining 50%. Origin has confirmed that it will not be participating in the drilling of the Snottygobble well and consequently ARC will be drilling the well as a Sole Risk Project.

"ARC is very keen to drill Snottygobble which is a gas prospect identified by the reprocessing of the 3D seismic data over the prospect subsequent to the acquisition of the Denison 3D data. We see very strong potential for additional growth in the gas business in the short term and are keen to capture some of that. Although we are disappointed they have declined to join us in the well, we respect Origin's decision not to participate at this time, pending completion of a major regional study that has recently been commenced."

The well is targeting a gas prospect which is a fault bounded closure with potential recoverable reserves of some 20 BCF at the P50 probability level. The principal risk is assessed to be reservoir development. If the well is a discovery it will be able to be quickly brought onto production through the XAGGS gas gathering system.

The wells in the L1/L2 licenses are named after native plants and the Snottygobble bush is a member of the Persoonia family. It is a bush tucker plant that has an edible sticky fruit that looks like it sounds, and the common name is derived from the indigenous name for the fruit.