With the strong oil shows recorded in the shallow interval for the first time, the company said it expected the well to become a very good producer.

Meanwhile, South Belridge-5-7 was spudded on Wednesday September 7, with a planned total depth of 1524 metres. It is the second in a six-well program to develop the Diatomite sections and test the shallow Etchegoin intervals.

These back-to-back wells will be drilled, completed and prepared for stimulation as early as next month, using hydraulic fracturing in multiple stages over each Diatomite interval, which has seen OP Inc successfully test a new fracturing program specific to the formations in this area.

The company said its new in-field water injector system had reduced operating costs and ended the production bottleneck effect, by increasing production to 200 barrels of oil per day. This rate is projected to rise beyond 500 barrels per day over the next few months, said OP Inc.

South Belridge project partners are: Maxim TEP (75%) and Orchard (operator – 25%), which is funding 100% of the first US$28 million of development capital for the multi-well drilling program.