The figure is based on Sea Lake-1 - which spudded on Sunday - being successful and the joint venture enjoying similar results across the project area, Fairstar managing director Kevin Robertson said.
The Hunt Energy Rig 3 is expected to take up to two weeks to drill Sea Lake-1 to its planned total depth of 1000m.
Fairstar has paid Knight $1 million for the cost of drilling the well to earn a 60% stake in PEP 165.
The company has previously said that regional seismic data has shown that Cooper Basin-equivalent sections may be present in the permit.
