Along with Origin Energy, the company will sidetrack the Hovea 9 ST1 appraisal well for a second time to confirm the southern extent of the field after wireline logs have been run and the well plugged back for the sidetrack to the water injection location 400m to the west.

Preliminary wireline log interpretation indicates that the well intersected the top of the oil bearing Dongara Sandstone reservoir approximately 16m above the original field oil water contact and that the well contains no gas cap.

ARC said due to government requirements the water injection sidetrack will be known as Hovea 10.

Subject to final joint venture approval the drilling rig will then drill the Eremia 2 horizontal oil development well.

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