Spudded almost a month ago, the Valhalla-1 exploration well was yesterday morning drilling ahead at a depth of 2405m. Total depth is planned for 3500m.

Arc said it has taken cuttings, which contained elevated gas levels and associated minor oil shows in the interbedded sandstones and claystones of the Anderson Formation, and interbedded limestones, claystones and sandstones of the

Fairfield Group.

“The significance of these indications will be determined once the well has reached total depth and wireline logging has been completed,” the company said.

“The continuing presence of oil and gas shows in the well remains encouraging.”

Late last month, the company reported that the well had encountered oil shows over multiple intervals between a depth of 110m to 925m. It said this result confirmed that hydrocarbons had migrated to the Valhalla structure and through the Tullock Nose.

Located in EP 371, Valhalla is the second major play to be tested in Arc’s regional drilling program.