hovea6-very good result

After Hovea 5s middling success its very good to see a 22m column on Hov 6-clear they will get over 5000bopd

Now to do a further drillhole ( Hov 7)-dont be surprised if they are not trying to get total over the 6000bopd-

ARQ ORG - ASX Company Announcement
$gen0 THIS IS A PRIORITY ITEM
14 February 2003
Part 1/1
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ARC ENERGY NL
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HOMEX - Perth
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Hovea 5/6 Update

ARC Energy NL advises that the current operation in the Hovea 6 well
operated by ARC Energy NL and located in the onshore Perth Basin
Production Licence L1, is setting cement plugs prior to commencement
of a second sidetrack of the well. The first sidetrack, Hovea 6
(formerly referred to as Hovea 5 ST1), achieved its objective,
encountering a 22 metre oil column, in the Dongara Sandstone, as
opposed to the 8 metre oil column in the original Hovea 5
intersection.

The Dongara Sandstone in Hovea 6 was intersected on prognosis, and
the sidetrack was also a significant operational success, with none
of the drilling problems seen on previous wells being encountered.

The aim of this next sidetrack (which will be referred to as Hovea 7)
is to intersect the Dongara reservoir at a location approximately 100
metres to the south east of the Dongara reservoir intersection in
Hovea 6. An increased oil column is prognosed at this location from
data obtained in the Hovea 6 well. If the reservoir is encountered as
prognosed it will provide a more optimal drainage point and thereby
assist in the recovery of the reserves from the southern extension of
the field.

It is anticipated that this next sidetrack will take several more
days to drill and complete.

Participants in Hovea 5, 6 and 7 are as follows:

* ARC Energy NL - 50%; and
* Origin Energy Developments Pty Ltd - 50% *
* a wholly owned subsidiary of Origin Energy Limited

E Streitberg
MANAGING DIRECTOR