canning basin curse continues

ARC Energy advises that testing operations on the Yulleroo 2 well have been terminated.
Since the last update it was determined that the perforating guns had failed to function and the
drill stem test equipment was retrieved from the cased hole to establish the reason for the
failure.
Subsequent to the successful retrieval of the test string and confirmation of the failure of the
guns, the Century 18 drilling rig suffered damage during routine testing of the BOP equipment.
ARC has now terminated the drilling rig contract for operational performance reasons.
Investigations into the incident are underway.
Interpretation of logs over the primary objective Tournasian Sands in Yulleroo 2 indicate the
presence of a total interval of 170 metres of interbedded sands and shales with the four main
sand zones covering 60 metres, with approximately 30 metres of net potential gas bearing
sands. These sands were encountered at a depth of approximately 2850 metres, some 400
metres updip from the correlative Tournasian Sands which flowed gas during testing in the
Yulleroo 1 well. The Yulleroo 2 well is located 2.5km east of the Yulleroo 1 well.
Following the release of drilling rig, the well will be suspended and a review of the available
testing options will be carried out. These include using a coiled tubing unit or workover rig.
Timing of the test will be dependent on operational conditions and equipment availability.