But this could increase to 6.9 million barrels, if the structure is filled to a level that includes the southern culmination, the partners said.
Cooper Energy has a 38.33% working interest in Fairbridge-1, while the other partners include Sundance Energy with 46.67%, Enterprise Energy with 10% and US independent Liberty Petroleum 5%.
Majority holder, Sundance Energy, described the Cooper Basin as a “cornerstone” project.
“It presents the company with an opportunity for higher risk, higher reward targets to balance our lower risk, but imminent producing gas wells in the US,” Sundance managing director Jayme McCoy said.
“This will be our first major thrust into the Basin and the potential along its northern flanks. Significantly, we are undertaking the campaign in partnership with explorers more highly experienced in the trend and production characteristics of the Basin at depth.”
Operator Cooper Energy estimates the chances of success at 22%.
The Fairbridge prospect was confirmed by both new and reprocessed, older seismic data in a seismic acquisition and processing program undertaken by Cooper last year.
Fairbridge lies close to the Keleary and Telopea oil fields and is on the spill path of both fields, according to Cooper managing director Michael Scott.
The risk was considered low in Fairbridge, due to validated reservoirs and seals in the nearby Keleary and Telopea prospects, as well as the additional seismic program, Scott said.
“The main risk, as always is on migration of hydrocarbons into the structure,” he said.
“This is mitigated somewhat, since Keleary is considered to be filled to capacity in several zones, with the Fairbridge structure situated updip from Keleary."
Depending on results, Fairbridge-1 is expected to take between 18 and 23 days to drill and evaluate. The well is to be drilled by the Ensign Drilling Rig 30 to a total depth of 2630 metres beneath the seabed.
Cooper said the Fairbridge Prospect consists of a large structure with two culminations. The company would first drill into the northern culmination, and if a hydrocarbon discovery is encountered, it would soon after drill the southern culmination, it said.
“Based on the results of the nearby Keleary Oil Field, 3.5km east, Fairbridge-1 has multiple targets in the Jurassic - Basal Birkhead/Hutton and Poolowanna – formations and Triassic, Tinchoo formation, reservoirs,” Cooper said.
The well is budgeted to cost a total of A$2.24 million.
Enterprise Energy said its share of costs would be fully funded, following last month’s farmout agreement with Cooper Energy to pay 48.33% or A$1.08 million of the well costs.
Fairbridge-1 will be Enterprise’s second well in its minimum seven-well program – the company’s largest oil and gas exploration drilling program since listing in May last year. The first well was PEL 106’s Rossco-1, in which the company holds a 12.5% interest, and was spudded last Wednesday.
"We are beginning 2006 with our largest drilling program since listing on the ASX last year, for both discovery and development," Enterprise Energy managing director Warren Leslie said.
"Not only have we a significant and virtually non-stop drilling program ahead of us for the next six months, but we will also be bringing to account our first revenue streams from the Smegsy gas discovery."
Fairbridge-1 is expected to intersect the Basal Birkhead/Hutton Sandstone at a depth of 2102m beneath the seafloor, the Poolowanna Formation at 2288 metres, and the Tinchoo Formation at 2362 metres.
