While the company is currently attempting to retrieve a stuck drill pipe operations so far have seen the Eremia 2 pilot hole plugged back and then sidetracked from a measured depth of 809m for the production well, which was then drilled ahead to a total measured depth of 2497m.

As planned, the production well intersected the Dongara Sandstone reservoir at an angle of 87.9 degrees and at an elevation approximately one metre above the elevation of the pilot hole intersection.

A short section of reservoir was then drilled prior to pulling out of the hole to set 9 5/8 inch casing to allow the full horizontal section to be drilled. The drill string subsequently became stuck in the hole as it was being retrieved.

The Eremia Oil Field is located 2.5km to the west of the Hovea Production Facility with Eremia 1 completed as an oil discovery in March after encountering an oil column of up to 18m in thickness in quality Dongara Sandstone reservoir.

Eremia 1 was placed on test production through temporary facilities six weeks after the rig was released and has subsequently produced in excess of 128,000 barrels of oil.

Eremia 2 is expected to intersect the Dongara Sandstone reservoir 250m east-southeast of the Eremia 1 intersection. Once the elevation of the top Dongara Sandstone is confirmed with the pilot hole the well will be plugged back and sidetracked to drill a horizontal production hole.

After the horizontal section is drilled the well will be completed for production. A flowline will then be constructed to the Hovea Production Facility.

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