The Hovea-12 well, which follows Hovea-11 – drilled in September 2004 – is primarily targeting the Dongara Sandstone, the main oil-producing reservoir in the Jingemia, Hovea and Eremia oil fields.

Arc yesterday said interpretation of wireline logs at the well indicated a 22m oil column above the current field oil-water contact.

“As a result of the wireline and pressure interpretation, this northern end of the Hovea field appears to be less depleted by the existing production than was anticipated from prior modelling work,” Arc said.

“The Hovea-12 well is therefore expected to access previously inaccessible reserves.”

The company said the well completion will now be run and the rig moved off location before the reservoir is perforated for clean-up flow and short production test.

Arc said the well would then be put on line as “quickly as possible” through the Hovea production facility to increase the current production from the field.

Hovea-12 was designed to intersect the Dongara Sandstone as near to the structural crest of the Hovea oil field as possible, which may be up to 20m updip from existing wells.

While the surface location of the well is inside the confines of the Hovea production facility, the well is being directionally drilled to intersect the top of the Dongara Sandstone at a depth of about 2274m, just over 1km north. The well is expected to take about 24 days to drill and complete.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) and Hovea 12 are Arc Energy (operator with a 50% stake) and Origin Energy Developments (50%).