|Thursday, 20 November 2003|
Arc Energy and Origin Energy, partners in the L1/L2 joint venture, have agreed to restart the final component of Phase 1 of the exploration drilling program following the completion of the Hovea 10 injection well.
|Drilling in the Perth Basin|
The first oil prospect, Kingia 1, will be drilled by the Century 24 drilling rig after it completes the Eremia 2 horizontal development well in late December or early January.
Two additional exploration wells have been agreed to follow Kingia 1, with a location agreed by the joint venture for the Xyris 1 gas exploration well to the east of Hovea, and a further location to be agreed as the program progresses.
"The recommencement of the exploration drilling program is an exciting and significant step forward in the development and exploration of the north Perth Basin.
"We have been very occupied with the development of the Hovea and Eremia Oil Fields since the last exploration well, Eremia 1, was drilled in May this year. With the build up in our operating capability and the completion of the bulk of the development drilling at the fields, we are now able to refocus on the exploration program," said Arc managing director Eric Streitberg.
"We will take the exploration program a step at a time, with Kingia being an exciting "high risk/high reward" start to the program. The important thing now is for us to keep the drilling momentum going, and to drill a good mix of wells in a sensible and considered program.
"Although it would be great to see a continuation of the 100% success rate the area has enjoyed so far, we know that the odds are that we will drill some dry holes, but if and when we do drill them, they will only help us focus on the better parts of what is one of the most prospective areas in onshore Australia," Streitberg added.
Click here to read the rest of today's news stories.