The company said the oil flow was obtained from an interval of 2617-2629m after it was successfully perforated using innovative engineering techniques not previously attempted in the region.

"The additional flow of oil demonstrated by the latest testing is very encouraging and increases the productivity of this well with the full potential of this interval yet to be revealed," managing director Carl Dorsch said.

"If we could match or surpass the oil flow of 408 barrels per day in Jacaranda Ridge 1 drilled in 1999, the additional hydrocarbon reserves will substantially increase the project's profitability.

"Also this potential additional reservoir further increases the prospectivity of the Jacaranda Ridge structure."

Previous work by Adelaide in November last year revealed the well was capable of flowing 2.5 million cubic feet of gas and 200bpd of condensate from sands below the newly perforated interval.

Adelaide Energy has completed scoping studies for a pipeline to connect the Jacaranda Ridge-2 well to gas markets while oil and condensate produced would most likely be sold directly to a refinery.