Arc said Hovea-4 flowed at initial rates in excess of 2,600 barrels of oil per day on a one inch choke, with surface tubing head pressure of some 175 psi.

The other designated production well, Hovea-5, is currently drilling ahead and further increases in the field rate are anticipated once the well has been completed for production. The well is currently at 953m and should intersect the Dongara Sandstone reservoir later this week.

As part of the development plan, Hovea-1 will shortly be completed for water injection to help optimise recovery of oil from the field while Hovea-3 will be used mainly as a monitoring well to assist in the production of the field, but it too will also be capable of production, Arc said.

Arc Energy's partner in the Hovea Joint Venture is Origin Energy Development, a wholly-owned subsidiary of integrated energy company, Origin Energy.