Drilling had previously encountered sandstones bearing oil within the lower Patchawarra Formation and upper Tirrawarra interval, company secretary Leni Stanley said.

Preliminary wireline log evaluation indicates about five metres of oil pay.

Cores from this interval are being analysed to provide a detailed evaluation of the reservoir sandstones.

Work continues at other wells on the PEL 103 block joint venture in the Cooper Basin.

An anticipated 23-day drill at the Flax-2 well, 930 metres south-west of the Flax-1 discovery well, starts this week to evaluate the Patchawarra Formation and Tirrawarra Sandstone reservoirs, both of which were productive at Flax-1.

The work will be similar to that carried out at Juniper-2, with the target intervals cored to provide rock samples estimating hydrocarbon saturation and for measuring rock properties for future reservoir stimulation, Stanley said.

No open-hole drill stem tests are planned. This will reduce of the risk of formation damage and provide optimal reservoir conditions for future stimulation.

Over the weekend, Innaminka brought in fracture stimulation equipment to use on Flax-1 later this week.

The well was completed as a Tirrawarra Sandstone oil well and underwent production testing at the end of last year.

The results were used to design an optimal fracture stimulation program, Stanley said.

Participants: Innamincka Petroleum Limited (operator) 35% and Vernon E Faulconer Australia Inc 65%.