The Perth-based company yesterday said 26-2H would be drilled vertically before being drilled horizontally along the selected reservoir interval at about 9975 feet (3km) for about 4000ft. It will then be cased and completed for production.

Operated by private US company Texas Crude Energy, Aurora said the well is expected to take about 40 days to drill and case prior to rig release.

A smaller rig will then be used to carry out reservoir stimulation and well completion operations to allow production to start. Subject to rig availability, this is expected to take about 14 days.

Last month, Aurora announced its first development well, 26-1H, in the North Belridge field produced oil significantly below the 500 barrels of oil per day (bopd) expected after fracture stimulation connected the reservoir with water.

The well has since been shut-in pending further development of the field.

Executive chairman Jon Stewart said he expected the company to be more successful at 26-H2, in the wake of the first well.

“North Belridge remains an outstanding opportunity for Aurora to participate in the development of a significant onshore oil discovery,” he said.

“This well, the second in the 10-well development program, will be drilled and completed with the benefit of hindsight, taking in to account the lessons learnt from our previous well.

“We remain very optimistic about the potential value of this project to our company and are confident of a good result in this well.”

Aurora said the North Belridge oil field has estimated potential P50 reserves of 60 million barrels of recoverable oil and 40 billion cubic feet of gas.

It said the operator’s estimate of potential recoverable reserves from this development well is about 600,000bbl of oil.

The initial production rate from NB 26-2H is estimated to be over 500bopd.

Aurora said due to the nature of the reservoir, some water production is expected at the outset and this will continue through the life of the field.