Bow said operator Santos advised that workers for the well have remobilised to the site and the drilling rig started making a move yesterday.

Drilling of Hudson-1 was expected in June but had been delayed by bad weather causing extensive road and lease damage.

Hudson-1 is on the same structural trend as the recent Cuisinier-1 oil discovery well.

Cuisinier-1 discovered 6m of potential oil pay within the Murta Sandstone and was suspended as a future producer.

"Bow believes success or even good oil shows at Hudson-1 would indicate the Hudson-Cuisinier high trend in the Barta Block has been the focus of oil migration and accumulation in the area," managing director Ron Prefontaine said.

"What really interests Bow is the multiple structural oil prospects located between and

adjacent the Hudson and Cuisinier structures, which offer excellent follow-up potential for additional oil discoveries in the Barta Block," Prefontaine said.

The JV comprises of Santos, Bow, Victoria Petroleum and Canada's Avery Resources. Bow retains 15% after the farm-out is completed.

In other company news, Bow said operator Mosaic Oil expects to spud the Jawsone-1 oil exploration well in PL 15 in the Surat Basin on, or around, July 16.

Bow is farming into Jawsone-1 by funding 50% of the cost of the well to earn a 25% direct working interest in PL 15.

Jawsone-1 will test one of several oil prospects and leads identified along the zero edge of the Showground sandstone in PL 15.

Prefontaine said an oil discovery within the Showground sandstone has the potential for high oil flow rates.