Aurora, which is listed on the Australian Stock Exchange, yesterday said the shows had started at 9980 feet (almost 3042m) and continued to the present 10,247ft. The shows and reservoir cuttings were comparable to those of the nearby discovery well.

Although encouraging, the significance of the shows would not be known until the well was logged and the completed horizontal leg production tested.

NB26-1H is the first of 10 initial development wells planned for the North Belridge oil discovery. The vertical discovery well intersected three oil-bearing reservoir intervals totalling 170ft at a depth of about 9800ft and was presently on production from the middle reservoir interval.

Aurora said it expected NB26-1H to be drilled vertically through the expected 170ft of reservoir section to a total depth of about 10,600ft.

After wireline logging, the well would be plugged back to about 9400ft and a new section kicked off directionally to drill horizontally along the selected reservoir interval for about 4000ft.

This part of the well was estimated to take a month to drill and case. Reservoir stimulation and well completion operations would then allow production testing to start.

The second well in the 10-well development program is expected to start in August.

“North Belridge is a recently discovered oil field and represents an outstanding opportunity for Aurora to participate in the development of a significant onshore oil discovery during a period of high oil and gas prices,” said Aurora executive chairman Jon Stewart.

Texas Crude Energy estimates North Belridge to have potential P50 reserves of 60 million barrels of recoverable oil and 40 billion cubic feet of gas. It estimates potential recoverable reserves from the NB26-1H well to be about 600,000 bbl of oil.

Aurora has a 32.5% contributing interest in NB26-1H and will receive 32.5% of the revenue until well payback, after which its interest reduces to 16.25% (net revenue interest 12.1875%).