Tap said the Banjo-1 exploration well, located 60km south of Varanus Island, is currently drilling ahead at 250m and should reach the target depth of 1000m in three days.

Tap managing director Paul Underwood said the prospect comprises a structural/stratigraphic trap formed by northernly dipping lower Jurassic and upper Triassic reservoirs sealed to the south by a large Jurassic shale filled channel.

"The prospect has the potential to contain up to 60 million barrels of recoverable oil with a mean risk calculated volume of 24 million barrels," said Underwood.

Participants in the EP-397 Joint Venture are Tap Oil (operator-33.3%), First Australian Resources NL 33.3% and Goodrich Petroleum 33.3%.