Operator Stuart said the well would be drilled on the Dunoon Ridge as a follow-up to the Harpoono oil discovery, 2.3km southwest, and to further test the oil-producing trend confirmed by more recent discoveries at Revenue, Rimfire and Might & Power.

Dunoon-2 is also located 500m northwest of Dunoon-1, which was drilled in 1984 by Delhi Petroleum and exhibited oil shows in the Murta Formation and McKinlay Member.

Stuart said the Dunoon-2 structure has the potential to contain 720,000 barrels of oil in both these formations.

Secondary potential also exists in the Hutton and Birkhead formations.

Interests in Dunoon-2 and PEL 113 are Stuart (66.7%) and Beach (33.3%).