"Further work on potential recovery factors has also been undertaken and it is probable that recovery factors will be in the order of 40 per cent assuming an industry standard recovery program is undertaken," Arc Energy said.
"On this basis, potential oil volumes recoverable from the structure would range from 8 mmbbls to 32 mmbbls.
"The large size of the potential reserves at Hovea, and the potential high recovery factors, are a function of the excellent reservoir properties, the thick and continuous sandstone reservoir units and the steep dips in the structure," Arc Energy said.
Arc added recently arrived preliminary data from Hovea 3D also confirmed Arc's original interpretation that the Hovea-1 well was drilled on the edge of the structure and that there is a substantial volume of high quality reservoir in the oil column up-dip from the well.
