Sydney-based AWE yesterday said oil shows had been encountered in the Eocene-aged Kapuni F sand formation over the interval 3655-3690m.
However, electric logs recorded while drilling indicated these sandstone beds were either of poor quality or finely interbedded over this interval.
The semi-submersible Ocean Patriot rig is drilling Kopuwai-1 and is more than 3876m down towards the total depth of about 4050m.
AWE said once the well reached TD, wireline logs would be run to assess the economic significance of the F sand interval.
Kopuwai-1 is in licence PEP 38482 and about 10km north of the $US269 million commercial Tui Area oil development.
With a mapped closure extending over 30 square kilometres, it could hold more than 100 million or more barrels of oil, according to AWE.
AWE's 50% interest is fully carried for the budgeted costs of the Kopuwai-1 well as a result of recent farm-outs to Beach Petroleum (20%) and Mitsui Exploration (30%).
