The Queensland junior said yesterday that wireline logging suggested the well had intersected 6-10 metres of oil pay within the primary target Patchawarra-Tirrawarra Sanfstone.

"Reservoir quality appears comparable to the field average," Innamincka said.

"In addition the well came in some 9 metres high to prognosis at the primary target interval thus increasing the proven field area."

The company announced late last month that the last appraisal well, Flax-3, had encountered a 20m oil column, the sand development of which was the best seen in the three previous wells.

After Flax-4, the company will drill the Flax East-1 exploration well, designed to test the saddle between the Flax and Juniper oil fields.

At the beginning of 2006, 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, which it holds a 75% interest in.