The company yesterday said the planned 8 square mile (20.7 square kilometre) survey will cover a significant part of the old Florence oil field and overlap a smaller survey shot in 2004.

Comet said the seismic data is expected to provide a critical subsurface view of fracture patterns that control oil production in the Pierre and Niobrara formations.

It plans to use the directional drilling capability developed at Tow Creek to redevelop the old field.

Permitting for the survey is expected to begin next week, with acquisition starting mid-to-late March.

Drilling is due to begin by the end of July.

The Florence oil field is about 140km south of Denver and 40km west of Pueblo. It has produced about 15 million barrels of oil in its 144-year history.

Comet said the underlying Niobrara Formation – the same one it is pursuing at Tow Creek and Bear River in northern Colorado – has proven productive but is “very lightly explored”.

Operator Comet and Australian partners, Strike Oil and AJ Lucas, each have a 26% working interest in the project.