Early wireline logs indicate the well could contain between 0.6 and 2.4 million barrels of oil according to Beach Petroleum managing director Reg Nelson. The well encountered up to 2 metres of oil bearing net porous sandstone in the Cadna-owie Formation

He said on the basis of that, the company would look to accelerate their exploration program and drill another four wells towards the end of the year.

"We have at least four exciting prospects defined, which we'll try to drill after the Henley well and some development drilling at the Bodalla oilfields in Queensland."

"Some are ready to drill while some others will need some seismic work done on them," he said.

Nelson said Beach would not be seeking to raise new capital to pay for their exploration. He said Beach was aiming to be producing around 2500 barrels of oil per day by November and would be able to pay for the drilling costs out of cash flow.

Interests are Beach Petroleum and Magellan Petroleum (50% each).