Koroit is following up the northern leg of a possible hydrocarbon play uncovered by the drilling of the Port Fairy well last year in which hydrocarbons were encountered.
Essential Petroleum managing director John Remfry said mineralisation in the reservoir had restricted permeabilities when in contact with water, and so they held hopes for better results in the northern area of permit PEP 152.
He said the well was targetting a structure with a possible 9.6 bcf recoverable gas or 10 mmbo recoverable oil.
Other partners in the well are Origin Energy (50.51%), Lakes Oil (15.59%) with Essential holding 33.9%.
