In an operations update, the company said it has continued the fracture stimulation program at the Flax-2 and Flax-3 wells.

After being fracced over the basal Patchawarra-Tirrawarra Sandstone interval, Flax-3 flowed 400 barrels of fluid per day – comprising 60% oil and 40% frac fluid – as well as 300,000 cubic feet of gas per day, on a 12/64-inch choke.

Innamincka said it expected Flax-3 to cleanup into a good oil producer.

At Flax-2, the company said flowback had been limited following fraccing of the Tirrawarra Sandstone interval.

Perforation of the basal Patchawarra sandstone has been undertaken and the zone is flowing oil and gas to the surface, it said.

Now Innamincka is planning the fraccing program for the Flax-4 well, expected to start in late September.

“Innamincka is pleased with the very encouraging reservoir performance shown by the wells and expects to commence oil shipments in the near future,” it said.

“Installation of the field compressor for gas injection remains on schedule for commissioning in late September.”

At the beginning of 2006, an independent team determined Flax had the potential to contain 3.2 million barrels of mean oil reserves.

The field is located in Cooper Basin permit PEL 103, Innamincka's main oil and gas permit, in which it holds a 75% interest.