Operator Arc Resources is using the Century 11 drilling rig at the well about 15 kilometres east-north-east of the township of Dongara and 1.8km south of the Hakia-1 well drilled in 1999.

Hakia-1 intersected a hydrocarbon column, interpreted to be gas, over a maximum 13 metres, Arc said.

The well flowed gas on drill stem test at 500,000 cubic feet per day and was subsequently abandoned.

Hakia-2 will evaluate the potential of the Dongara Sandstone about 35m updip of Hakia-1.

The well was to be drilled to the High Cliff sandstone to evaluate this reservoir and the Irwin River coal measures.

The upper Irwin River coal measures are gas-bearing at Hakia-1 but display generally poor reservoir quality, Arc said.

Better reservoir quality is estimated in the lower Irwin River coal measures, which were not intersected at Hakia-1.

At the Corybas-1 well - which targeted the lower measures - flows of up to 2.5 million cubic feet per day were recorded during production testing before the flows declined.

It is proposed Hakia-2 will reach 2,900m measured depth, taking 15 days to drill.

Participants in the L1 and L2 licences (excluding the Dongara, Mondarra and Yardarino fields) and Hakia-2: Arc Energy Limited 50% (operator) and Origin Energy Developments (a wholly-owned subsidiary of Origin Energy Limited) 50%.