With multiple oil targets, Toparoa-1 will address 1.6 million barrels of unrisked P50 oil in place, with an upside P10 of 3 million barrels, Stuart said.

If successful, the well will confirm a new oil play in the Hutton Sandstone and McKinlay Member in a structure west of the Derrilyn Oil Field, managing director Tino Guglielmo said.

"This well is adjacent to and on trend with the very productive Derrilyn Oil Field and its potential for success is rated highly at 55%," Guglielmo said.

Following a farmin to the Toparoa Prospect, Canadian-based Avery Resources will fund 100% of the well costs to earn a 35% interest.

If the partners have success at Toparoa-1, a second well Toparoa-2 will be drilled immediately afterwards to appraise the southern extent of the field.

The Century Rig 18 will be used to drill Toparoa-1 to a total planned depth of 1600 metres.

Toparoa-1 will be within the Merty Merty Pastoral Lease, about 50km south-southeast of Moomba and 1.1km southwest of the Derrilyn oil field.

Derrilyn-1 has produced more than 600,000 barrels of oil from the Hutton reservoir, and on pump was capable of producing at more than 2000 barrels of oil per day, Stuart said. Three hundred metres away, Derrilyn-2 was also capable of producing more than 2000 barrels of oil per day.

Stuart said a Hutton oil discovery at Toparoa was expected to have similar reservoir properties to Derrilyn.