ARC energy managing director Eric Streitberg said Xyris South-1 was designed to test an interpreted fault compartment to the south of the gas accumulation discovered by the Xyris-1 well.

“If successful, the well will be able to be quickly and efficiently tied into the Xyris gas facility which is nearing construction completion,” Streitberg said.

“The well will provide additional deliverability for existing and new gas contracts, and is liable to be particularly important for peak load supply during the coming high-demand summer months.”

The well is being drilled directionally from the Xyris-1 surface location to a target bottom hole location about 785m southwest of the surface location. The depth to the prognosed top of the primary objective Dongara Sandstone is approximately 2825m measured depth.

The proposed total depth of the well is 2975m measured depth. Streitberg said it was expected to take 25 days to drill and complete.

Interests in Xyris South-1 are ARC Energy Limited 50% and Origin Energy Developments Pty Ltd 50%.