“PEL 27 is ideally positioned to trap hydrocarbons migrating out of the trough as demonstrated by the recovery of oil in Sawpit-1 and the flow of oil to the surface at Killanoola DW-1,” Essential Petroleum said yesterday.

“Both wells were drilled within PEL 27 and are on trend with Cowrie.”

Cowrie is about five kilometres west of the Killanoola discovery and could hold in excess of four million barrels of recoverable oil, according to Essential.

Cowrie-1 will be the fourth well drilled in an Origin Energy-led multi-well program currently expected to begin in late July or early August in the onshore Otway Basin.

Participating interests in PEL 27 are: Beach Petroleum Limited (operator) 30%, Origin Energy Resources Limited 50% and Essential Petroleum Resources Limited 20%.