The company said current operations were drilling ahead in an 8½-inch hole towards a toal depth of about 3100m.

Paprika-1 will test an anticlinal structure about 13km southwest of the Cadenza-1 new field gas discovery, 7.5km northwest of the Rossco-1 new field gas discovery, 10km south of the Nulla field, and 7.4km north of the Smegsy gas field.

The main targets are in the Patchawarra Formation with secondary potential anticipated in the underlying Tirrawarra Formation.

Based on nearby well penetrations, there could be up to 50m of stacked net sand. Pre-drill estimates of the volumetric potential for in-place gas range between 9 billion cubic feet (P90) and 70 bcf (P10) with a P50 of 30 bcf.

Paprika-1, which was spudded on June 11, is expected to take about 21 days to drill.

Paprika-1 is being fully funded by Energy Investments subsidiary Kompliment and Enterprise Energy subsidiary Traditional Oil Exploration, and in the event of a commercial discovery, interests in any resultant production license will be Great Artesian (operator with a 50% stake), Energy Investments (37.5%) and Enterprise Energy (12.5%).

Paprika-1 will be the fourth well drilled in PEL 106 this year. The three previous wells – Udacha-1, Middleton-1 and Cadenza-1 – have been cased and suspended as new field gas discoveries and potential future gas/condensate producers from the Patchawarra Formation.