“We look forward to continuing our multi-well drilling program, commencing with the Black Bass prospect,” said InterOil CEO Phil Mulacek.

"This prospect is particularly interesting to us from a strategic point of view because of its accessibility by road and its proximity to InterOil's refinery at Port Moresby."

The well is located in PPL 236, about 160km north-west of Port Moresby.

The primary target is a limestone reef identified by a recently conducted seismic survey. The depth of this reef is estimated to be 1,200m.

A statement said all necessary regulatory approvals had been received and the preparation of the drill site had commenced. A drilling contract has been executed and arrangements are being made to mobilise a drilling rig to the site.