Operator Arc Energy reported that drill stem test 2 was conducted over the interval 2410 to 2537 metres and resulted in a gas flow of about 3.7 million cubic feet per day, through a 1/2 inch choke with 610 psi surface pressure.

"The results are very encouraging," said Arc executive director Eric Streitberg.

Since the last report, the well has been drilled from 2459m to 2501 metres and core two was cut over the interval 2501 to 2537 metres with 41% recovery.

Participants in L1 and L2 (excluding the Dongara, Mondarra and Yardarino fields) and Corybas 1 are: ARC Energy Limited - 50% (operator) and Origin Energy Developments Pty Ltd - 50% (a wholly owned subsidiary of Origin Energy).