The well, which is also the first significant oil discovery onshore in Western Australia since the discovery of the Hovea field in the Perth Basin 10 years ago, flowed for eight hours during a cased hole test at varying choke sizes.

It had a peak rate of 1647 barrels of oil per day on a half-inch choke with wellhead pressure at 18 psi.

The oil is light with an API gravity of 37 degrees. No significant gas was recovered.

Buru executive director Eric Streitberg said the discovery was a "stunning result" and validated Buru's faith in the prospectivity of the Canning "superbasin".

"Although it is too early to say how large the accumulation is due to uncertainties in regard to the depth of the oil/water contact and the exact configuration of the structure, seismic mapping indicates that the overall Ungani feature is large and therefore has the potential to contain significant reserves."

Streitberg added the Ungani feature was geologically distinct to previous discoveries in the basin and was a new play type in the Fitzroy Graben province of the basin.

Ungani-1ST1 has been suspended and subject to regulatory approvals, Buru will skid the rig to drill an immediate appraisal well from the same drilling pad, to a bottom hole location 500m to the northeast of Ungani-1.

Shares in Buru jumped 20% on the news this morning and were trading at 88c.