This level is believed to be the equivalent of the interpreted oil bearing sandstones penetrated in Nannygai-1. Wet gas shows of 17%, including high readings of C3+ (often indicative of liquid hydrocarbons) and trace fluorescence, were recorded, BSOC said.

The quality of the log data received to this point has been poor due to poor downhole communications, and the company said it had not drawn any definitive conclusions as yet.

At 9:00 am AEDT, drilling was continuing at 3590 metres (3119 vertical metres below sea level) in the Latrobe Formation.

Forward operations are to drill ahead to planned total depth at approximately 3700 metres and assess whether to drill further and/or to run wireline logs.

Participants in the Vic/P42 joint venture are Bass Strait Oil Company Ltd (operator) 50% and Inpex Alpha Limited 50%.