The results confirmed hydrocarbons were throughout the Permian section, delineating an accumulation over about 30 square kilometers. But the downdip extent of this accumulation has yet to be defined.

"Clearly the Juniper field represents a substantial in-place resource," Innamincka said.

"Future work will be focused upon defining reservoir variation and properties over this large area, leading to recoverable reserves estimation and establishing field production."

Before the analysis, Juniper-2 intersected hydrocarbon saturated sandstones in the Patchawarra Formation and Tirrawarra Sandstone, resulting in conventional coring of the basal Patchawarra-Tirrawarra interval.

At the time, wireline log evaluation of the cored interval indicated about 5m of potential oil pay.

Subsequent core analysis showed oil-saturated sandstones exhibiting low poroperm characteristics. As expected, fracture stimulation will be needed for production, Innamincka said.

The rock properties indicated the reservoir sandstones were suitable for fracture stimulation and plans to fracture stimulate one of the field’s wells later this year are being considered in a field appraisal program, the company said.

Wireline log interpretation also identified possible hydrocarbon pay in upper Patchawarra sandstones but cased hole testing will be needed to evaluate this potential.

Innamincka said it would continue this work alongside development activities in the Flax, and Yarrow fields, and ongoing exploration in permits PEL 103, PEL 101 and ATP 543P South.

The company also spudded its Flax-2 well on Friday for an expected 23-day drill to evaluate the Patchawarra Formation and Tirrawarra Sandstone reservoirs, both of which were productive at Flax-1.

A fracture stimulation for Flax-1 was rescheduled for early this week with the crew and equipment arrive over the weekend.

The PEL 103 joint venture is: Innamincka Petroleum (operator) 35%, Vernon E Faulconer Australia 65%.