“This is a follow-up to the oil discovery made by Harpoono-1 in May 2004 and subsequent appraisal drilling of the Harpoono field carried out in 2006,” the company said.

“Revenue-1 is located 1.4km southeast of the Harpoono oil discovery in the northeast area of the Dunoon Ridge.”

The Revenue structure has potential oil in-place of 1.4 million barrels (mean) in the Murta Formation and the McKinlay Member in which oil has been discovered at Harpoono. There are also secondary oil targets in the Birkhead and Hutton formations.

The planned total depth is 1490m.

Revenue-1 is separated from Harpoono by what is interpreted to be a northeast-southwest wrench fault, Stuart said.

The site is at the northeastern end of a structural ridge (at the top McKinlay and top Murta formations), which extends south-westerly to the Mentor prospect.

“The Revenue structure is thought to be in an ideal location to receive any hydrocarbons which have migrated through the Harpoono field from north to south,” Stuart said.

“A discovery of oil at Revenue will upgrade the potential of Mentor and the entire structural ridge which is adjacent to, and up-dip of, the wrench fault.”

The Harpoono 3D seismic survey, recorded in 2005, was used to map the Harpoono oil discovery and the Revenue structure.

Participants are Stuart Petroleum, which holds a 66.7% stake and Beach Petroleum (33.3%).