The well, located in the Unitised Area PPL 206/208, is estimated to have about 1.1 million barrels of oil in place.

The primary target stratum is the Hutton; secondary strata are the McKinlay and the Murta. Planned total depth is 1488 metres and the partners estimate the chance of success at 64%.

“Derrilyn-2 will be drilled on the crest of the Hutton Sandstone depth structure map, approximately 300 metres north of Derrilyn-1,” Stuart said.

“Derrilyn-2 is primarily a Hutton Sandstone development well. The Hutton Sandstone is the largest pool in the field with production to date from Derrilyn-1 of approximately 500,000 barrels of oil. This recovery is anomalously high when compared with the currently interpreted oil in place for the Hutton reservoir, so some upside for reserves exists.”

The will also appraise two other oil pools, identified in Derrilyn-1. The McKinlay Member of the Murta Formation flowed oil on test in Derrilyn-1 at about 200 barrels a day. The Murta had good oil shows in Derrilyn-1 but was not tested. Derrilyn-2 will evaluate oil shows and reservoir quality in both of the secondary targets.

The sand in Derrilyn-1 is only 3 metres thick but is currently producing at 1800 barrels of oil a day and total production is rapidly approaching 500,000 barrels. The joint venture will be targeting field production rates between 2000 and 3000 barrels per day after Derrilyn-2 is connected for production.

Participants are Santos Ltd (operator) 65% and Stuart Petroleum Limited 35%.