Entek yesterday said the well, in State Lease M-106410, Block 24-L S/2 SW/4, was spudded on Saturday and would be drilled to a target depth of about 4236m. This would take about 40 days.

In April, Entek said it was paying about $US52,000 ($A69,000) for a 20% stake in the lease operated by an unnamed but prominent and experienced Gulf-focused company, which owned the other 80% of the lease.

Last week, Entek said it was farming-out its 20% interest in the block to unnamed US-based independents for a "free carry" in the well, though it would retain a 5% working interest before royalty burden.

The block consists of 720 acres (291 hectares) located about 10 miles (16km) offshore in 37 feet (11.3m) of water.

Company chairman Russell Brimage said Entek would issue weekly announcements during the drilling of the well.