Adelaide Energy will case and suspend the Killanoola South East 1 well in the PRL 13 onshore tenement in the Otway Basin of South Australia following the discovery of producible hydrocarbons.

The third test run in the 1,000–1,012m interval has recovered black crude oil, along with the water cushion following a 1.5 hour flow period, which equated to 60 barrels of oil per day.

The firm will complete the well and a pump installed using a smaller work-over rig and expects the production to commence “very soon”.

ADE managing director Carl Dorsch said the well has proved the concept of movable hydrocarbons in the Killanoola SE structure.

“We knew the oil was there as we had had such encouraging fluorescence shows from 957m whilst drilling – it is highly likely there is more movable oil up to this depth giving a good column to work with,” said Dorsch.