The Perth-based company said the NS2-D1 well was free-flowing 35-degree API crude, with a 3% water cut that was decreasing as the well continues to clean-up and unload some of the 7690 barrels of drilling fluid lost in the reservoir during drilling.

“Pressure data at various choke settings indicates the well may be capable of rates much higher than the tested flow rate,” Carnarvon said.

“Production has been temporarily choked back as a result of limited oil storage capacity.”

Carnarvon expected operator Pan Orient would put the well on long-term production test of 1800-1900bopd.

The NS2-D1 has produced the highest flow rate to date within the NSE structural closure.

“All of the other NSE wells continue to perform above expectation with sustained oil rates and very low water cut,” the company said.

NS2-D1 was a deviated well drilled to a vertical depth of 865m within the southern fault compartment of the NSE oil field between the POE-9 and NS8-D1 wells.