Dalray-1, which has a planned total depth of 1580m, is about 2.5km southwest of the Padulla discovery on a separate culmination at the southwestern end of the Dirkala Ridge.

Stuart said the Dalray structure has the potential to host 2.1 million barrels of in-place oil in the Murta Formation and the McKinlay Member, which have both produced oil shows in the Padulla Field.

“Important” secondary potential also exists in the Cadna-owie Formation, according to Stuart.

“A small amount of oil was recovered from this formation in Padulla-4 and the same formation will soon be tested in Padulla-3, where strong oil shows and a positive log response occur,” managing director Tino Guglielmo said.

Permian Age Patchawarra Formation source rocks are present along the western and northwestern faulted flanks of the Dalray Structure. Meanwhile, an additional Dalray South closure exists 2.5km from the Dalray-1 location, which would be targeted with a follow-up well if Dalray-1 proves successful, the company said.

The PEL 93 joint venture comprises Stuart Petroleum, as operator with a 70% interest, and Cooper Energy with 30%.