Interests in the lease are Longreach Oil (operator) 50% and Brisbane Petroleum 50%. Brisbane Petroleum is an unlisted company in which Longreach has a 22% shareholding.

Two Showgrounds sandstone oil accumulations with oil similar to that found in Yellowbank Creek and Thomby Creek are known to exist in ATP 755P, according to Longreach’s geological consultant Kin Tjhin.

The McWhirter structure is 5km north-northwest of Yellowbank Creek, while Beardmore is 2km west of Yellowbank Creek. Two wells have been drilled in McWhirter and one in Beardmore.

“Existing seismic control and other geophysical and geological data will be reinterpreted,” Tjhin said.

“With the current high crude oil price, these deposits should become viable for production. The companies are investigating re-entering and re-completing McWhirter-1, which has already been cased and perforated.”