The well is being drilled on the crest of the Hutton Sandstone structure in the Derrilyn field, about 300m northeast of Derrilyn-2.

“This well, on the northeastern end of the extremely productive Derrilyn field, has the potential to significantly increase reserves by proving up extension of the field in a northeasterly direction and has the potential for high rate oil production during a period of record oil prices,” Stuart managing director Tino Guglielmo said.

The Hutton Sandstone is the largest pool in the field with about 800,000 barrels of oil produced to date from Derrilyn-1 and Derrilyn-2. The sand in the Derrilyn field is 2-3m thick and is currently producing at 700 barrels of oil per day (bopd).

Stuart expects the latest appraisal well will provide additional stratigraphic and pressure data, in addition to being an important drainage point for the Hutton pool.

Derrilyn-4 will also appraise two other oil pools, identified in Derrilyn-1, 2 and 3.

The McKinlay on test in Derrilyn-1 flowed oil at 195bopd. In Derrilyn-3, the Cadna-owie recovered 14bbl of oil on test, according to Stuart.

Stuart’s seismic interpretation of the Top McKinlay depth structure is that Derrilyn-1 and 2 were drilled near the apex of the structure. At Derrilyn-4, the company expects the McKinlay to be structurally lower and may not be an effective offtake point for the pool.

Derrilyn-3 is currently being completed for production from the McKinlay.

If completed as a Hutton producer, Derrilyn-4 will be installed with a downhole pump and connected by flowline to the Limestone Creek oil satellite.