The Flax prospect was the PEL103 Joint Venture's third well and consists of an anticlinal structure, some 5km south east of the Yarrow gasfield.

Production tubing has now been run and the Tirrawarra Sandstone perforated over the interval 2702.0 to 2718.5m while cleanup flows at various rates have been conducted. Having gathered initial oil and gas samples for analysis, the well has been shut-in for approximately seven days to enable surface testing, crude storage and trucking facilities to be installed and connected.

The extended production testing will then commence with the objective of defining the optimal oil recovery parameters and to establish field development options.

Initial analysis of the Flax Field reserves interpreted a total of 12.8m of gas pay sandstone within the Patchawarra Formation. The gas reserves attributed to the formation are estimated at 34.3BCF recoverable gas

A total of 9.1m of oil pay sandstone was interpreted within the Tirrawarra Sandstone with the oil in place resource attributed to the formation calculated to be 17.4 million barrels.

Assuming 30% ultimate recovery of the in-place resource, the recoverable reserves for the Flax field are estimated at 5.2 million barrels.

Participants in the PEL 103 Joint Venture are Innamincka Petroleum (Operator) 35% and Vernon E Faulconer Australia Inc 65%.