The Perth-based company said the State GC-2 well location, with a planned total depth of 11,600 feet, was developed using 3D seismic data.

It said both this well and State GC-1 were located in areas of elevated amplitude thought to be caused by the incidence of porosity.

“The credibility of the amplitude response has been enhanced because of the lack of amplitude associated with two dry holes drilled adjacent to the State GC-1 well by neighbouring lease holders,” Samson said.

“Thus there is both positive and negative evidence that the porosity associated with the Lower Leonard can be imaged by 3D seismically derived amplitudes.”

Both the State GC-1 and State GC-2 wells are located in the Permian Basin in Lea County in eastern New Mexico.

State GC-1 is ultimately expected to recover 1.1 million barrels of oil from the Lower Leonard formation.

“And the State GC-2 well can be expected to have a similar recovery so long as the amplitude response is proven to be accurate,” Samson said.