Last week, the partners recovered 13 barrels of oil and one barrel of oil and mud emulsion during drill stem test 2 at its Coolum-1 well in the Eromanga Basin.

Beach said a third 125 minute test had produced no flow to the surface but the drill stem yielded 36 barrels of oil and five barrels of mud.

Managing director Reg Nelson said he was hopeful that once a beam pump was installed the well could produce between 100 and 200 barrels of oil per day.

He also said they would probably reactivate the shut-in Glenvale well at the same time, which is only a kilometre away.

Nelson said oil from Coolum would probably be trucked to the Inland Oil Refinery facility at Eromanga and if further exploration increased the production rate, a flowline to the Kenmore field 10km away was likely to be installed.

Partners are Beach Petroleum Ltd (operator) 46.95%, Inland Oil Production 20%, Entek Energy Ltd 28.15%, Gidgealpa Oil 4.9%.