Last April, the Perth-based company paid $US60,000 ($A76,600) for 100% of the oil and gas rights over two leases, Carter and Stockton, in Cumberland County to earn an 87.5% revenue interest.

To better understand the sub-surface structure of the area, Westralian ran a shallow 15km 2D seismic survey worth $A51,000 over both leases.

Then yesterday afternoon, the company announced it had spudded its first exploration well, Thomas-1.

With a planned total depth of 1450 feet (442m), the wildcat is designed to test the Granville and Knox formations, which are known oil producers in the region.

The drilling program will continue over the next two to three months with a further six exploration wells, in addition to re-entering several shut-in wells.

Westralian described the start of drilling as a “significant step” towards becoming a “serious” oil producer.

Like many Australian juniors, Westralian moved to the US after failing to succeed in Australia. The company was set up by Perth entrepreneur Peter Briggs to explore for coal seam methane in southwest Western Australia.

Its business plan was to use CSM to generate electricity and become a niche electricity supplier, marketing its gas and power to established power retailers, as well as local government, farmers and wine growers, minerals processors and other commercial users in southwest WA.

But success in its WA CSM prospects has been elusive.

In addition to the Kentucky leases, the company also has two Vlaming Sub-basin permits, offshore Perth, where it has recently identified six leads.