In a statement this morning, Strike said operator Beach ran a straddle test over the interval 1519-1536m to evaluate shows in the Patchawarra Formation.

But these shows were only considered to be residual oil, while only slightly gas-cut formation water was produced on reverse circulation.

Interpretation of the wireline logs and sidewall cores indicate the presence of a small, sub-commercial oil accumulation at the top of the Hutton Sandstone.

The Kerrawa-1 well, which reached a total depth of 1630m, was designed to appraise the Gidgee oil discovery, which flowed more than 1000 barrels of oil per day in 1989.

Working interests in the permit are Beach with 85% and Strike with 15%.