The first well to be drilled in the campaign was Coolum-1, which was completed as an oil producer in February last year.

Under an earlier farm-in agreement, Entek has the right to participate in the drilling of a second well, Byrock-2, to earn a 28.15% interest in any discovery. A third exploration well drilled in the permit would earn Entek a 28.15% interest in the ATP-269P permit.

In exchange for its interest, Entek must pay 66.1% of the well costs for the three earning wells above, to an agreed cap, thereafter at the rate of 28.15% for the cost of the wells above the cap. Thereafter participation in the permit will be at 28.15% of further drilling, exploration and exploitation costs.

Next month, the Beach-led joint venture, which also includes Inland Oil Production (20%) and Gidgealpa Oil (4.9%), plan to drill the second well, Byrock-2, Entek said.

The well is a follow-up to the exploration well, which recovered 14.5 barrels of oil on test from a 5m oil column in the Toolachee formation, before being plugged and abandoned in January 1986. At the time, low oil prices meant the discovery was considered non-commercial.

With a planned total depth of 2060m, Byrock-2 will primarily target the Toolachee Formation, with secondary potential in the Patchawarra Formation, in which weak fluorescence was observed in the exploration well.

If successful, Entek will earn 28.15% of production in Byrock-2, even though the final well to complete the earn-in obligation in the whole of ATP-269P is not scheduled to be drilled until next year.

Two other wells that were scheduled for drilling in the permit this year have been delayed until February next year due to rig availability and the interpretation of seismic acquired earlier this year.

Likewise, further drilling at the Coolum Block, also in ATP-269P, has also been deferred until the first quarter of next year.