Eremia 6 Production Expected to Commence in Mid-December

Origin Energy Limited said that the Eremia 6 well, operated by ARC Energy and located in the onshore Perth Basin Production License L1, has now been completed and flow tested at an initial rate of 3,790 barrels of oil per day.

Since the last report, operations at the well have been the completion of cementing of the production casing, running of production tubing and the release of the drilling rig to the Lyginia 1 location.

After perforation over an eight meter interval at the top of the Dongara Sandstone a cleanup flow was undertaken and the well was then flowed over a 6 hour period through a 1 inch (24.5 mm) choke. The average flowing tubing pressure during this period was 190 psig (1,312 kpa) and the average oil flow rate was 3,790 bopd (602 cubic meters per day) with no water. The well will now be put on production through the temporary flow line until installation of the permanent flow line that is expected to take approximately three weeks.

This is the third successful appraisal / development well in the current program following on from Jingemia 8 (initial rate of 3,520 barrels of oil per day) and Hovea 12 (initial rate of 3,230 barrels of oil per day).

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) and Eremia 6 are:

--Origin Energy Developments Pty Ltd, 50%
--ARC Energy Ltd (Operator) 50%