The Perseverance-1 wildcat in WA-325-P has been drilled to a total depth of 1774m and as of 6am WA time yesterday, the joint venture was running electric logs.

“The well has penetrated the two main objectives, the Dongara Sandstone and the Irwin River Coal Measures,” Roc said.

“Drilling and preliminary log data indicate that good gas indications are present in sands with moderate reservoir quality over a gross interval of approximately 32m below the top of the Dongara Sandstone.

“The significance of the gas shows will be determined after logging has been completed.”

Perseverance-1 is scheduled to be followed by Dunsborough-1 in WA-286-P.

The previous well in the program, Frankland-1, found gas but it has not yet been determined whether this discovery is commercial.

However, Arc Energy managing director Eric Streitberg told the Excellence in Upstream Energy conference in Sydney this morning he believed both wells would eventually prove to be commercial.

Streitberg said it appeared that Perserverance was a "substantial gas discovery."

"I know there's a divergence of views on that, but I believe the discovery will be economic. But it's my personal view that it will be stranded gas for some time yet," he said.

Participating interests in WA-325-P are Roc Oil (37.5%), Apache (37.5%), Arc Energy (20%) and Wandoo Petroleum (5%).

Arc is in the process of acquiring Wandoo’s Perth Basin interests.