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Drilling is expected to take 18 days, after which the rig will drill the Flax-4 and Flax East-1 wells.
At the beginning of last year, an independent team determined Flax had the potential to contain 3.2 million barrels of mean oil reserves.
PEL 103 is Innamincka's main oil and gas permit, in which it now holds a 75% interest.