This flow rate later stabilised at 1660 bpod after the choke size was increased. With a stable well head pressure of 215 psia, the accompanying gas flowed at a rate of 340,000 cubic feet of gas, Arc Energy said.

The Hovea well was drilled in October 2001 and encountered an eight metre oil column in the Dongara Sandstone reservoir. A subsequent drill stem test over the seven-metre interval from 1995-2002mKB produced oil at 950 bpd through a half-inch choke.

According to Arc Energy, the forward plan is to continue production testing for at least another week, then shut in for ten days before analysing the down hole pressure gauges. The other participant in the well is Origin Energy Development (50%).