In its quarterly report, released late yesterday, the Perth-based company said 26-2H has reached total depth of 4457m.

Aurora said shortly after the end of the quarter a steel liner was successfully run to total depth and the well was suspended waiting on reservoir stimulation.

The North Belridge oil field has estimated potential P50 reserves of 60 million barrels of recoverable oil and 40 billion cubic feet of gas.

The company has said private US operator Texas Crude Energy estimates the potential recoverable reserves from the development well to be about 600,000bbl of oil.

The initial production rate from NB 26-2H is believed to be over 500 barrels of oil per day.

Aurora said due to the nature of the reservoir, some water production is expected at the outset and this will continue through the life of the field.

The company has a 16.25% interest in the 10-well North Belridge Oil Development Project.

In its report, Aurora also said the well testing program at its Sugarloaf-1 joint venture in Texas has been finalised and operations there are due to begin next month.

During the quarter a number of “encouraging” gas shows were encountered during drilling at the well, both in the primary target formation and in Cretaceous aged carbonates at shallower depths, it said.

Following wireline log interpretation, the joint venture decided to run and cement a production liner and develop a program for the fracture stimulation and testing of the zones of potential interest in the primary target formation.

Sugarloaf-1 partners are Texas Crude Energy (operator with a 41.5% stake), Aurora (20%), Adelphi Energy (20%), Eureka Energy (12.5%) and Empyrean Energy (6%).