ARC Energy should know by today whether the much-anticipated Hovea-2 well, near Dongara, is a bonanza or a duster.
The Perth-based company called a precautionary trading halt on Friday in a bid to head off any speculative trading.
Arc managing director Eric Streitberg said the Hovea-2 well was expected to reach target depth over the weekend.
Arc was trading at 51¢ before the trading halt was put in place.
There has been strong trade in Arc in the past couple of weeks, with Cottesloe-based fund Packer & Co buying a 6.45 per cent stake.
The onshore Hovea-2 well, which is jointly held by Arc and Origin Energy, is a follow-up to the Hovea-1 discovery made in October last year.
During testing, Hovea-1 flowed at a rate of more than 1600 barrels per day of oil and 340,000 cubic feet per day of gas, with recoverable reserves estimated at up to 24 million barrels.
The well is 14km south of Dongara and 8km south of the Dongara gas processing plant.
Arc and Origin are hoping the second well substantially increases the size of the Hovea discovery.
