Aurora, which is listed on the Australian Stock Exchange, yesterday said the directional hole kicked off at 9216 feet (2809m) and reached the targeted position in a horizontal attitude at a measured depth of 10,282ft.

After casing is installed and cemented, the final horizontal portion, about 4000ft long, will be drilled entirely within the reservoir zone between limestones. A production liner will be installed over the full length of the horizontal well, which will then be ready for hydraulic fracturing, and oil and gas production.

Aurora said final well log analysis had confirmed up to 190ft of oil pay. An encouraging increase of inferred permeability towards the base of the reservoir had led to the targeting of the lower zone for production in the next development well rather than the same zone as in 26-1H.

Subject to rig availability, drilling of the next well could start in late August.

North Belridge 26-1H is the first of 10 initial development wells planned for the North Belridge oil discovery and is located close to the vertical discovery well that intersected three oil-bearing reservoir intervals totalling 170ft at a depth of about 9800ft.

Texas Crude Energy estimates North Belridge to have potential P50 reserves of 60 million barrels of recoverable oil and 40 billion cubic feet of gas. It estimates potential recoverable reserves from the North Belridge 26-1H well to be about 600,000bbl of oil.

Aurora has a 32.5% contributing interest in North Belridge 26-1H and will receive 32.5% of the revenue until well payback, after which its interest reduces to 16.25% (net revenue interest 12.1875%).