Jupiter is farming into a 50% interest in PEP 163, after spending $1.2m to drill the Bellarine-1 well, a follow-up to the Hindhaugh Creek well drilled in 1969

Lakes Oil will also grant Jupiter a six-month option to earn a 33.33% percent interest in the adjoining permit (PEP 164) on a similar expenditure basis.

A suitable drilling rig has been located and drilling is expected to start in about four to six weeks.

The partners said the Hindhaugh Creek well appeared to have been drilled off-structure, but it still achieved an unmeasured flow of gas to surface.