ASX RELEASERelease Date: 3 January 2007Re: Dongara 36...

ASX RELEASE
Release Date: 3 January 2007
Re: Dongara 36 development well results and future drilling program
ARC Energy Limited advises that drilling and completion of the gas development well Dongara
36, operated by ARC and located in the Dongara Field in onshore Perth Basin Production
Licence L2 has been completed. The well was drilled using Century Rig 18 to a total depth of
1,896 metres measured depth in 152 mm (6”) hole after setting a 178 mm (7”) liner above the
main objective Arranoo Sandstone at 1,706 metres measured depth at an inclination of
approximately 70 degrees. The reservoir section was encountered close to prognosis with good
hydrocarbon shows.
A single lateral bore was then drilled from the main bore to 1,844 metres measured depth. The
well was then completed with 73 mm (2 7/8”) production tubing.
A clean up flow was then conducted with final flow rates estimated to be in excess of 6.1 million
cubic feet per day (mmcfd) on a 48/64 inch (19 mm) choke at a flowing surface pressure of 405
psi.
The rig is currently being skidded to drill the Dongara 37 gas production well from a surface
location some 12 metres from the Dongara 36 surface location. Dongara 37 is expected to
spud on Friday, 5 January 2007.
The drilling candidates immediately following Dongara 37 are Eremia 7, a further development
well following up the successful Eremia 6 development well, the Drakea and Beharra Springs
Deep exploration wells, and the Beharra Springs 4 appraisal well. The well selection and order
is subject to obtaining the requisite joint venture and regulatory approvals for the various drilling
candidates.
Managing Director’s comments:
“Given the recent well publicised tightness in the Western Australian gas market, the success of
the Dongara Arranoo gas development wells will help ARC ensure it is taking advantage of the
situation to the fullest extent possible.”
Participants in Dongara 36 are:
• ARC Energy Limited (Operator) 100%