The well is about 33 kilometres southeast of Amity's Gocerler gasfield and will test a shallow anticline with a coincident 2D bright spot anomaly in a reservoir which produces commercial gas in two gas fields within 10 kilometres of the well.

Amity's partner, the State-run TPAO, estimates "most likely" (P50) recoverable reserves, if hydrocarbons are present, of 15 billion cubic feet of natural gas.

The well will be drilled to a total depth of about 900 metres. Casing will be run and cemented at 110 metres and 350 metres, prior to drilling the primary target between 620 metres and 830 metres.

Also reported this week was trading by an entity associated with Allchurch, Haifa Pty Ltd, which sold 200,000 shares at 73.8 cents on the 11th and 14th April. He still has control of more than 4.5 million AYO shares and options.

Allchurch said that Amity’s tight corporate governance rules concerning directors and share trading, combined with Amity's busy ongoing drilling program, meant this was the only window opportunity to sell any stock until the end of June.

He pointed out the sale represented only around 4% of his holdings in the company and any inference that he was selling to take advantage of the current share price, was incorrect.