The Cooper Basin explorer this morning said the Flax East-1 ST1 well was drilling towards basement at a depth of 2815m.

“The well has fully penetrated the target section, which in comparison with nearby Flax and Juniper wells, appears hydrocarbon saturated,” the company said.

“From the Flax East-1 ST1 mudlog, good gas shows and oil fluorescence were associated with potential reservoir sandstones in the Patchawarra Formation and Tirrawarra Sandstone interval.”

Concerns about hole stability mean the company will not undertake drill stem testing.

The Flax joint venture comprises Innamincka, as operator with 75%, and SCGAU (a subsidiary of the Seoul City Gas) with 25%.