In its quarterly report, the company said yesterday that site preparation for the wells proposed for permit PEP 168 were advanced.

The three prospects have been upgraded from leads, after Essential and its 50:50 partner Inland Oil Resources calibrated the existing 3D seismic data with existing well data.

Essential said the first well to be drilled would target the East Wing prospect, which has 5.1Bcf of gas resource at the P50 level of confidence.

Following this, drilling contractor Australian Drilling Services would turn its attention to the Ayrford prospect, which has 9Bcf of associated gas resource.

Depending on the success of these two wells, the company would then move to drill the Callaghan prospect, which contains 8.1Bcf of potential.

Essential and Inland Oil Resources won the rights to PEP 168 last May.

At the time of the award, Essential’s managing director John Remfrey said PEP 168 was a “highly prized” permit.

He added that his company had long been aware of the undiscovered potential of the area and had “waited patiently” for the opportunity to bid on the block.

This was the first time the permit had been offered by the Victorian Government since the initial discoveries were made in the early 1990s.

A commercial discovery in any one of the identified prospects would enhance the potential of the Waarre play within the permit, according to Essential.

Also at the end of February, Essential says a 100km 2D seismic survey is due to start being shot over the Digby West and Dartmoor leads in PEP 151.