Trio last month came across oil shows in Fairground-1 while drilling in the Miocene sand over the 5m interval from 1577-1582m, with accompanying good drilling break and gas shows.

VicPet today said wireline logs and sidewall cores indicated a cumulative net 8m of potential oil sands with “good to excellent” reservoir characteristics between 1561m and 1582m.

Production casing has been run and sands have been perforated, with production testing planned to take place later this week, it said.

VicPet said a further net 7m of potential oil sands in a shallower zone from 1327-1349m requiring a different completion technique would be done separately for production at a later date.

Managing director John Kopcheff said VicPet was pleased to have encountered potentially producing oil sands in the prospect.

“While the target size is modest, this is more than offset by the well being drilled from an existing oil production facility,” Kopcheff said.

“This ensures immediate connection to the established production facilities in the event the production tests show the well is a commercial oil producer.

“A successful well here will add to VicPet’s current USA and Australian net oil production of around 250 barrels of oil per day.”

VicPet said a successful well at Fairground would add to its current US and Australian net oil production of around 300bopd.

The well, along with its Growler-1 well, is part of its plan to drill up to 15 wells in the Cooper Basin and the US over the next six months.

The company plans to test its Growler-1 well in the Cooper Basin in the next few days.

VicPet has a 15% working interest before payout and 9% working interest after payout in the Fairground-1 well and prospect.