Production from its Mirage-1 oil well has reached 310 barrels of oil a day, while Ventura-1 is flowing at 120 barrels per day, it said.
If three new development wells at the Mirage field are successful, production could reach 1000 barrels per day by the middle of 2006, VicPet said.
Initially scheduled to arrive at the US Eagle project by the end of this month, the Kenai rig was delayed after extra time was needed at its current drilling operations, the company said.
The partners, which also include Australian companies First Australian Resources, Lakes Oil and Sun Resources, are hoping Eagle North-1 will be a case of third time lucky. Production at the Eagle prospect was twice halted – once in 1986 and again in 2001 – for different reasons.
As a partner in the project from the beginning, VicPet’s managing director John Kopcheff said success would have a significant impact on the company's position as a growing USA and Australian oil and gas producer.
“Victoria Petroleum is pleased to be re-commencing appraisal work on the Eagle Oil Pool Development drilling project,” he said.
“A successful appraisal Eagle well and follow-on development drilling will provide significant cash flow for the company.”
After drilling vertically to a planned depth of 4200 metres and if oil is encountered in the target Gatchel Sandstone, Eagle North-1 will be cased, production tested for five days and then horizontally drilled for 300 metres and completed for oil production, VicPet said.
If successful, up to 1000 barrels of oil per day are expected from the well, it said.
The Eagle Oil Pool has estimated recoverable reserves up to 34 million barrels of oil and 58 million cubic feet of gas.
VicPet currently has a 20% interest in the Eagle Oil Pool Development Project and a 20% near free carried interest through the drilling and testing of the Eagle North-1 horizontal well.
Participants in the Eagle Oil Pool Development Project and Eagle North-1 are: Empyrean Energy PLC (38.5%), Victoria Petroleum NL (20%), First Australian Resources NL (15%), Lakes Oil NL (15%), Sun Resources NL (10%) and US private interests 1.5%.
