Sunset said the significance of the hydrocarbon shows at around 3200 feet would be evaluated after wireline logging operations had been completed.

Nesbitt-5 is targeting the Upper and Lower Mohnian Sand. The well is expected to take up to 25 days to drill to the target depth of 7900 feet.

Sunset and Solimar each have a 20% working interest in the Silverthread project, which is in the prolific Ojai oil and gas producing area of the Ventura Basin, about 100km northwest of Los Angeles.

Silverthread has potential P50 recoverable reserves of about 7 million barrels of oil and more than 15 billion cubic feet of gas.