ARC Completes Dongara 36

ARC Energy Limited said that drilling and completion of the gas development well Dongara 36, operated by ARC and located in the Dongara Field in onshore Perth Basin Production License L2 has been completed.

The well was drilled using Century Rig 18 to a total depth of 1,896 meters measured depth in 152 mm (6") hole after setting a 178 mm (7") liner above the main objective Arranoo Sandstone at 1,706 meters measured depth at an inclination of approximately 70 degrees. The reservoir section was encountered close to prognosis with good hydrocarbon shows.

A single lateral bore was then drilled from the main bore to 1,844 meters measured depth. The well was then completed with 73 mm (2 7/8") production tubing.

A clean up flow was then conducted with final flow rates estimated to be in excess of 6.1 million cubic feet per day (mmcfd) on a 48/64 inch (19 mm) choke at a flowing surface pressure of 405 psi.

The rig is currently being skidded to drill the Dongara 37 gas production well from a surface location some 12 meters from the Dongara 36 surface location. Dongara 37 is expected to spud on Friday, 5 January 2007.

The drilling candidates immediately following Dongara 37 are Eremia 7, a further development well following up the successful Eremia 6 development well, the Drakea and Beharra Springs Deep exploration wells, and the Beharra Springs 4 appraisal well. The well selection and order is subject to obtaining the requisite joint venture and regulatory approvals for the various drilling candidates.

Eric Streitberg, ARC's Managing Director, commented:

"Given the recent well publicized tightness in the Western Australian gas market, the success of the Dongara Arranoo gas development wells will help ARC ensure it is taking advantage of the situation to the fullest extent possible."

ARC is the operator and sole participant in Dongara 36.