The Perth-based company said as of yesterday, the 13 3/8-inch surface conductor was set to a depth of 78m and the Century 18 rig was picking up drill pipe to drill the 12¼-inch section.

“Eremia-7 is designed to test the northern extent of the Eremia structure which the recent Eremia-6 well demonstrated has potential to contain significantly more reserves than originally interpreted,” Arc managing director Eric Streitberg said.

“If successful the well will confirm a reserves upgrade for the field and enhance the field’s production capacity.”

The primary target of Eremia-7 is the Late Permian Dongara Sandstone, the main oil-producing reservoir in the Eremia oil field.

Located about 15km east-southeast of the township of Dongara, the well is designed to intersect the Dongara Sandstone as near as possible to the structural crest of the Eremia oil field, and updip of existing Eremia wells.

The well is being drilled directionally and is prognosed to intersect the top of the Dongara Sandstone at about 2117m depth, which is about 165m southeast of the surface location.

It has a planned total depth of about 2263m and is expected to take 18 days to drill and complete.

Arc and Origin Energy each hold a 50% stake in L1.