Arc Completes Dongara 37

Arc Energy Limited has completed drilling and completion operations at the gas development well Dongara 37, which Arc operates and is located in the Dongara Field in onshore Perth Basin Production License L2.

The well was drilled using Century Rig 18 to a total depth of 1,691 meters measured depth. The well intersected the target Arranoo gas sand interval approximately 3 meters high to prognosis. A single lateral bore was then drilled from the main well bore to 1,697 meters measured depth. The well was then completed with 73 mm (2 7/8") production tubing. The well is currently being prepared for production testing, and tie-in operations on the Dongara 36 well will also be completed shortly. The Dongara 36 and 37 wells have successfully appraised and developed the Arranoo Pool of the Dongara Field and will provide additional production and gas sales capacity.

The current operation is moving Century Rig 18 to the location of the next well, Eremia 7, which is an oil development well following up on the success of the recent Eremia 5/6 development well.

The drilling candidates immediately following Eremia 7 are the Drakea 1, Beharra Springs Deep 1, Fresh Water Point 1 and Eutaxia 1 exploration wells, and the Beharra Springs 4 and Jingemia 11 appraisal/ development wells. The well selection and order is subject to obtaining the requisite joint venture and regulatory approvals for the various drilling candidates.

Australia-based Arc Energy owns and operates oil and gas interests in the Perth and Canning basins and internationally.