stokes bay : update, page-11

Stokes Bay-1 Testing Update
Pancontinental Oil and Gas NL (ASX: PCL) wishes to advise
that Joint Venture (JV) partner and operator of the EP 104 & R1
Onshore Canning Basin project, Arc Energy (ASX: ARQ), has
released the following update on testing of the Stokes Bay-1
exploration well.
Further to the ASX release of 23 November 2007, ARC as the
operator of the EP104/R1 Joint Venture, advises that it has
suspended the testing of Stokes Bay-01 and removed all contractors
and equipment from the site following recent rainfall.
As was anticipated, the onset of seasonal rain has limited the safe
access to the well, due to the low-lying terrain around the well site.
The access track and well site have become temporarily unsuitable
for the safe operation of heavy oilfield equipment.
The timely testing of the Stokes Bay-01 well is a priority, and ARC
Energy plans to recommence the Stokes Bay well testing
programme as soon as safe access is available at the end of the
wet season, anticipated to be around April 2008.
The nature of the reservoir fluid and the source of pressure within
the reservoir remain undetermined. Better access facilities would be
constructed to allow year-round production, should the well be
commercially productive.
The next update on Stokes Bay-01 well will be issued when testing
of the well recommences.
Enquiries:
Matthew Battrick, General Manager