Located 60km south-east of Moomba, the well is targeting sandstones of the Namur and Hutton Formations that form a structural culmination on the southern flank of the Battunga Trough.

Beach Petroleum and Magellan Petroleum each have 50% stake. Beach is the operator.

Almonta-1 is only about 300 metres south of the border with PEL 115. So the next door neighbours are watching the well with keen interest.

The PEL 115 joint venture partners – Victoria Petroleum (operator) 40%, Roma Petroleum 20%, Impress Ventures Ltd 15%, Entek Energy Ltd 12.5% and Tacnas Pty Ltd 12.5% – have said they believe there is a highly prospective Murta oil trend present in the southern part of their lease.

"This trend extends west to east, from the Almonta Structure, shared with Beach Petroleum, through to Victoria Petroleum's Ventura-Mirage-Lightning structures,” Victoria Petroleum managing director John Kopcheff said.

“The PEL 115 Joint Venture plans to further explore and develop the highly prospective Ventura-Mirage-Lightning trend in 2005."

PEL 115 junior partner, Impress Ventures, said depending on results at Almonta-1, the PEL 115 venture could drill an Almonta North well.

“Almonta lies approximately 5km north-west of the Ventura oil field discovered last year by the PEL 115 joint venture, and would further confirm the existence of a new oil producing province in the southern part of PEL 115 where several further prospects are present,” Impress said.