Junior partner Great Artesian Oil & Gas told the Australian Stock Exchange that yesterday morning the well was drilling ahead at a depth of 289m.

Keeley-1 is the second in a five well back-to-back drilling program in PEL 107 and PPL 212. The first well, Kiana-2, was plugged and abandoned last week after failing to encounter hydrocarbons.

Great Artesian said Keeley-1 would test a combined Permian anticlinal and stratigraphic trap in the southern Patchawarra Trough of PEL 107.

The Keeley prospect, which coincides with a robust anticlinal closure, is considered prospective because of its similarities with the Raven gas field, 10km to the northwest.

Great Artesian said volumetric estimates put Keeley’s potential mean recoverable reserves at about 10 billion cubic feet of gas, with a maximum potential of about 29Bcf if stratigraphic trapping is also involved.

The primary reservoir objectives in Keeley-1 are sandstones of the Patchawarra Formation reservoirs.

Great Artesian said Keeley-1 is likely to take about 16 days to drill to a planned total depth of about 3023m.

Beach holds a 40% working interest in Kiana, while Great Artesian and Magellan each own 30%.