Callawonga-1 flowed 2400 barrels of oil per day at 115psi during yesterday's drill stem test over the the uppermost Namur Sandstone interval 1340-1346m.

No water was observed during the test and a full string of oil was recovered.

At 6am (CST) this morning, the rig was preparing to drill ahead to further evaluate the Namur Sandstone oil zone and deeper objectives.

Meanwhile at Kenmore-37, interpretation of log and test data indicates the well, which was drilled to a total depth of 1566m, has intersected about 4-5m of net oil pay structurally up-dip of nearby wells.

A drill stem test conducted over the lower portion of oil pay at a depth of 1395-1399m in the Birkhead Formation flowed no fluids to surface in the 90-minute test period. But 16 barrels of oil and 17bbl of water were recovered from the pipe.

Casing has been run and cemented in place and yesterday a well-head was installed.

Kenmore-37 was drilled to appraise the oil potential of the Basal Jurassic reservoir up-dip of Kenmore-1 on the northeastern flank of the field.

Once released from Kenmore-37, the drilling rig will move to Kenmore-38, about 200m north of Kenmore-22. Kenmore-38 is expected to spud on Saturday.