*dongara 31 arranoo oil & gas appraisal well spuds

Here are the Managing Director, Eric Streitberg's comments:
"Dongara 31 is designed to test the oil and gas production potential of the Arranoo Sandstone reservoir of the Dongara Field. The Arranoo reservoir lies above the Dongara Sandstone reservoir and has produced both gas and oil. The Dongara 31 well has been designed to test the production potential of this reservoir using a combination of high angle well bores and laterals.

The well is being drilled adjacent to the Dongara 24 well which currently produces both gas and oil from the Arranoo reservoir and this will allow the Dongara 31 well to be quickly brought into production. A successful well will allow us to both convert 3P reserves into 2P reserves and to prove a technique which may be able to be used on other similar reservoirs in the area.

The well has been brought forward in the drilling sequence as joint venture approval was not forthcoming for the Hovea 12 appraisal well which ARC had proposed to follow the recent successful Xyris South 1 well. Although Dongara 31 is an ARC project on ARC's 100% owned Dongara Field and may lead to further ARC wells, ARC will continue to work with the joint venture to establish an agreed program going forward."
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A bit annoying that there appears to be a difference of opinion between ORG and ARQ in how to move forward, however the good news is that ARQ have now spudded a 100% equity oil and gas appraisal well which if successful, particularly for oil, should be very positive for the share price.