The test will be conducted over a previously untested new volcanic objective where oil shows and elevated mud gas readings were encountered along with drilling fluid losses.

Free oil was also observed over the shale shakers at surface while circulating the well with the drillbit near the top of the new zone.

Testing of the new zone is expected to be completed within 7-10 days.

On completion of POE-9A, drilling will start on the NS3-D1 sidetrack that will deviate horizontally north of the original NS3-D1 well bore that penetrated the main volcanic reservoir at the down dip, southernmost extent of the NSE South fault compartment.

Carnarvon added the L44H-D2 well in the same permit is drilling ahead at a depth of 1456m after logging and setting intermediate casing at 1043m, just below the base of an unexpectedly thick volcanic zone.

Good oil shows and free oil at surface were observed while drilling this zone.

Oil shows were also encountered in two deeper, previously untested volcanic intervals encountered at 1072m and 1410m depth, with thicknesses of 20m and 28m respectively.

The company said it expects to encounter additional volcanic targets before the well reaches its planned total depth of 1800m.

Carnarvon has a 40% stake in exploration permit L44/43 while Pan Orient is the operator holding the remaining 60%.