The rig is now preparing to spud the Pinnacle West-1 well in ATP 608P Remainder Block, which has a planned total depth of 1594 metres.

It is designed to test the oil potential of the Boxvale and Basal Evergreen sandstones, with secondary targets in the Hutton and Basal Moolayember sandstones. The well is expected to take six days to reach the Boxvale sandstone primary target.

Immediately following Pinnacle West-1, the rig will move to Donga-3 in ATP 805P, about 20 kilometres east on the same interpreted oil trend.

Donga-3 is a 1590-metre deep test of the basal Moolayember sandstones, which recovered light sweet crude oil and water in the Donga-1 and Donga-2 wells drilled in 1969 and 1979 respectively.

Donga-3 also has secondary targets in the Hutton, Basal Evergreen and Boxvale sandstones and is expected to take nine days to drill.

An option to drill a third well, Pinnacle-1, is conditional on results from the first two wells.

Pinnacle-1 is about 5km east of Pinnacle West-1 and would be drilled to similar depths to test the same targets on an independent structural culmination.

The participants in each well are:

Pinnacle West-1: Oilex NL (operator and 48.125%); Bow Energy (20%); Victoria Petroleum NL (24%); and private interests (7.875%).

Donga-3: Oilex NL (operator - 42.5%); Bow Energy (42.5%); and Victoria Petroleum NL (15%).

Pinnacle-1 Well: Oilex NL (operator and 48.125%); Bow Energy (20%); Victoria Petroleum NL (24%); and private interests (7.875%).