Operator Santos said it was too early to comment on the significance of the discovery until it has been further evaluated. Wireline logs are currently being run to test the well.

The joint venture was actually chasing oil. The prospect has been estimated to have mean potential recoverable oil reserves of 24 million barrels and an estimated potential of 75 million barrels of oil in place, according to junior partner Mosaic Oil.

The various releases put out by the partners have been tight-lipped and it is not clear whether the well has reached total depth of 3,200 metres or if other reservoirs are still to be drilled or tested.

The well is being drilled by the ENSCO 56 rig and is located 8.5km north-west of Woodside's Legendre oil joint venture with Apache Energy and Santos.

Interests in WA-208-P are Woodside 34.03%, Santos (operator) 31.31%, ENI Australia Ltd 18.66%, Beach Petroleum 10% and Mosaic Oil NL 6%.