Blue Energy out to unlock Surat Basin's oil riches
EXPLORATORY drilling for oil reserves will start near Roma in less than a week.
Blue Energy Limited will drill and evaluate the Marburg 1 well, 120km north-west of Roma, to a planned depth of 700m.
Blue Energy CEO John Phillips said he believed the Surat Basin, currently a major centre for coal seam gas activity, had been overlooked as a potential oil production site.
"Definitely in the early days they were looking for oil … they were looking for the big elephants if you will," Mr Phillips said.
"They didn't get enough encouragement with the initial well.
"We think there's a reasonable chance that there's something that's missed."
The first stage of the exploration, which is funded by KIB Energy, will take several weeks.
"Obviously if it's a dry hole we walk away, but if we do get some encouragement we will follow up with some work.
"By the end of October we'll have a pretty good idea of what we've got.
"It's a risky venture in terms of chance of success."