Arc managing director Eric Streitberg said the Hovea-2 well was expected to reach target depth over the weekend. Investors should know by today whether the well is a duster or not.

Arc was trading at 51 cents before the trading halt was put in place.

The onshore Hovea-2 well is jointly owned by Arc and Origin Energy and is a follow-up to the Hovea-1 discovery made in October last year.

During testing, Hovea-1 flowed at a rate of more than 1600 barrels per day of oil and 340,000 cubic feet per day of gas, with recoverable reserves estimated at up to 24 million barrels.

Arc and Origin are hoping the second well substantially increases the size of the Hovea discovery.