In a statement today, the Cooper Basin explorer said it has contracted the Ensign Rig 30, along with contract personnel and ancillary services, and will next week start preparing access roads and drillsites.

The well program, which is expected to take two months, involves drilling two new production wells – Flax-3 and Flax-4 – and the subsequent fracture stimulation of the previously-drilled Flax-2 well.

Once complete, oil production from these three wells is expected to start, concurrent with recycled gas injection into the oil reservoir units via the Flax-1 well.

Following the Flax wells, Innamincka will move on to drill an exploration well, Flax East-1, to test the possible connection of the Juniper and Flax accumulations.

In addition, the company has proposed to drill the Yarrow North-1 well to test an oil column structurally below the Yarrow gas field.

Innamincka has also designed a fracture stimulation and completion program for the Yarrow-1 well, which may be required as a future supply for gas injection into the Flax field.

A pipeline to connect the Yarrow and Flax fields has now been purchased.

Innamincka said an independent review of the Yarrow gas field concluded the potential for 22.8 billion cubic feet of mean recoverable reserves.

In addition, the company has started discussions with potential gas customers, pipeline operators and other nearby explorers as part of a plan to advance the project.

In March, Innamincka wrapped up a $7 million farm-out to South Korean energy company Seoul City Gas, which is earning a 25% interest in the PEL 103 permit.