Currently at a depth of 4272m, the well first encountered oil shows at a depth of 4152m and again at 4255m in the target Gatchell lower Mary Bellochi oil sands, the Perth-based company said.
VicPet, which is the well operator, said it now plans to drill a further 25m and then pull out of the hole to run a 4½ inch casing to case off the Kreyenhagen shale.
The company then plans to drill a 3¾ inch horizontal well bore for a distance of 320m to within 30m of the existing Mary Bellocchi-1 oil well.
Mary Bellocchi-1 has previously produced daily rates of up to 223 barrels of oil and 700,000 cubic feet of gas from the lower Gatchell oil sands.
VicPet said a successful Eagle North-1 horizontal well and its subsequent production performance would indicate the potential size of the Eagle Oil Pool.
Upon a successful horizontal well completion, VicPet expects to achieve flow rates of up to 1000 bbls of oil per day.
Participants in the Eagle Oil Pool Development Project and Eagle North-1 are Empyrean Energy (38.5%), Victoria Petroleum (20%), First Australian Resources (15%), Lakes Oil (15%), Sun Resources (10%) and US private interests (1.5%).
