“Oil has been encountered in the first two wells drilled to date by Tullow Oil in the Uitkijk Block,” said Key Petroleum, an Australian junior chaired by former Hardman executive Ted Ellyard.

Key has a 1.75% free carried interest in two onshore Suriname permits, Uitkijk and Coronie, through an agreement with Hardman.

The wells were shallow – about 500m each – according to Key.

“This means they can be drilled in very quick succession,” the company said. “However, further drilling and post-well study, which may include testing, will be required to establish commercial viability.”

Key said it was awaiting further results from Tullow.

“Key Petroleum is obviously pleased with these initial results but cautious optimism needs to be applied at this very early point in the onshore drilling program,” said Key managing director and chief executive Ken Russell.

Participants in the Uitkijk and Coronie joint venture are Paradise Oil, an entity controlled by the State oil company, Staatsolie Maatschappij Suriname NV, and Hardman Oil and Gas Pty Ltd, a subsidiary of Tullow Oil.

Tullow chief operating officer Paul McDade told Petroleum magazine that while the Irish company had been primarily interested in Hardman's African assets, its acreage in the Caribbean and northeast South America had turned out to be surprisingly exciting.

McDade said the Suriname and Guyane (French Guiana) and exploration assets complemented Tullow’s strategy of global production very well and “quite a lot of progress has been made on them” since January.

In addition, Hardman had put itself into a strong position to bid for two licences in Trinidad and Tobago. Tullow has since negotiated an increase in the size of those licences and has won the contract to go into partnership with the government on those licence areas.