The partners recently completed the Hovea 8 horizontal production well, which is now producing in excess of 6,000 barrels of oil per day through the Hovea Production Facility.

Hovea-9 is being drilled as a vertical well from a surface location some 1.2km south of the Hovea Production Facility and is located to intersect the edge of the Hovea Field as currently mapped.

The aim of the well is to better define the southern extent of the field, give greater confidence to field reserves and provide a point for water injection into the reservoir to provide pressure support.

Depending on the results of the initial intersection the well is likely to be sidetracked to an optimal water injection location to the west of the field.

Consequently, as well as providing valuable appraisal information on the southern end of the Hovea Field, Hovea 9 will also optimise oil recovery from this area of the field.

At the completion of the Hovea 9 well the Century 24 rig will drill the Eremia 2 horizontal appraisal/production well on the Eremia Field. It is anticipated that if Eremia 2 achieves its objectives it will recover the majority of the reserves in the field and will confirm the development model that has been developed for future fields.

The joint venture is close to finalising its intentions for the ongoing program, which is likely to involve a mixture of exploration and development wells and, if all parties' objectives are to be met, may involve the mobilisation of a second rig into the basin.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) are ARC Energy 50% (operator) and Origin Energy Developments 50%.