Operator Beach has cased and suspended the previous well, Marcoola-1 as a new oil field discovery, while the first well, Nudgee-1, was plugged and abandoned.

Entek said the Warragon-1 well would be drilled 1 kilometre south of the Mt Bellalie-1 well, which exhibited hydrocarbon shows during drilling in 1984.

With a total depth of 1992 metres, Warragon-1 is located about 18km northeast of Eromanga, in permit ATP-269P.

Companies with interests in ATP-269 are Beach Petroleum (46.95%), Entek Energy (28.15%), IOR Exploration (20%) and Santos (4.9%).