Operator Bow Energy said the well had yesterday reached a depth of 1383m, where following a drill bit change, drilling was planned to continue through to the secondary Basil Jurassic sandstone targets, which have the potential to contain up to 90 million barrels of recoverable oil.

Bow said Banff-1 was a 1650m-deep test of a large four-way dip closed structure.

The company is earning a 25% direct working interest in the 5392 square kilometre Barcoo Block by funding 60% of the costs to drill Banff-1. It will also receive a further 40% interest in the block through its purchase of Oilex’s onshore Queensland assets, subject to shareholder approval at the upcoming annual general meeting.

Interests in the ATP 794P Barcoo Block after the drilling of Banff-1 will be Bow (with a 65% stake) and Victoria Petroleum (35%).