In a statement, Empire said the Parrot Hill-2 appraisal well in EP 435 was an updip test of the 1987 exploration well drilled by Ampolex, which encountered a 6.2m gross oil column at the top of the Birdrong Sandstone.

Parrot Hill-1 well was subsequently completed as an oil well but never produced, and was later plugged and abandoned when Ampolex was acquired by Mobil.

Empire said the Parrot Hill structure is well defined by nine seismic dip lines and two strike lines. Recent seismic interpretation suggests the Parrot Hill oil field extends to the southeast, which is where Empire proposes to spud the appraisal well.

Based on the same interpretation, the structure is estimated to contain about 750,000 barrels if it correlates to the prognosed oil-water contact.

In the event of a commercial oil discovery, Empire said the EP 435 joint venture planned to use its existing production facilities and trucking fleet to process and transport the crude to the BP oil refinery at Kwinana.

After Parrot-2, Empire plans to use the contracted DCA Rig 7 to drill a further four to five wells in the Carnarvon Basin. They are Whitlock Hill-1 in EP 412, Bee Eater-1 in EP 359, Lake MacLeod-1 in EP 439 and Pelican Hill-1 in granted permit application 5/06-7.

The Parrot Hill-2 partners are wholly-owned Empire subsidiary Rough Range Oil (operator with a 38% stake), UK-based Phoenix Resources (25%), Australian Oil (17%), Bounty Oil & Gas (10%) and Black Fire Energy (10%).