Arc Announces Eremia 7 Test Results

Arc Energy Limited, which operates the Eremia 7 appraisal well in the onshore Australia Perth Basin Production License L1, said that the well has been completed and that initial flow testing has been undertaken.

Since the last report, the operations at the well have been to prepare for and undertake a cleanup flow and to connect the well to the Hovea Production Facility.

The well has now been perforated over a 5-meter interval (measured depth) at the top of the Dongara Sandstone reservoir and a clean up flow undertaken. This was followed by test production through the test separator at the Hovea Production Facility.

The initial test flow was conducted using a choke size of 40/64 inch at which a flow rate of 1,553 barrels of oil per day was measured. The well head flowing pressure at this choke size was 175 psi. The well will now be tested on a range of different choke sizes to evaluate its long term flow potential.

"The reported test rate for the well is in accordance with the performance of the other wells in the field and Eremia 7 will add significant additional production capacity to the HPF," said Eric Streitberg, Arc's managing director. " We are also looking forward to the rest of the drilling program onshore and offshore in the Perth Basin prior to the commencement of the Canning Basin drilling program."

Arc Energy is one of Australia's preeminent energy companies, owning and operating oil and gas interests in the Perth and Canning basins and internationally.