However, elevated gas readings and high pressures logged while drilling has led the partners to suspend, rather than abandon, the well so it can be re-entered at a later date.
"Wireline logs and pressure measurements recorded over the past few days have indicated that the elevated gas readings and faster drill rates noted while drilling in the primary objective Wagina Formation are related to a fractured zone. Analysis of the data indicates that this zone is unlikely to be capable of sustainable commercial flow rates," said an Arc statement this morning.
"Due to the high temperature and pressure in the zone of interest, open hole drill stem testing of the well is not possible and the well would have to be cased prior to testing. The wireline log results are not considered sufficiently encouraging to justify this additional cost."
"It is therefore intended that Redback 1 will be plugged and suspended in a manner that will allow the well to be re-entered and sidetracked to an alternative bottom hole location if future studies warrant further investigation of this area of the permit."
Arc dropped four cents on the announcement to be trading at 94c.
Meanwhile the partners' Xyris-1 gas well (50% each) is at 776 metres, drilling ahead to 2750 metres.
