The disocovery is in the Mehr exploration block, an area of around 2,500 sq km in the province of Khuzestan.

According to a Dow Jones report, the Mehr find was drilled to a depth of 4,148 metres and subsequent testing of the reservoir has led to average flow rates of 1,040 bpd.

OMV said it intended to drill two further appraisal wells in order to define the overall size of the oil field.

“This discovery provides the basis for further OMV exploration in this oil rich region," said OMV board member responsible for exploration and production

Helmut Langanger.

OMV holds a 34% stake in the block and is the operator. The balance is shared equally by Spain’s Repsol YPF and Chile’s Sipetrol.