Company chief executive Dave Bennett said from Wellington that the first drill stem test, of the deepest package of sandstones encountered, between 9780-9845 ft, had been completed and the well shut-in for a pressure buildup.

The PEP 38736 partners had decided it was not worth testing the middle zone, so would move to the top interval later this week. Flow test results would then be released early next week.

Earlier this month Indo-Pacific sidetracked the deviated Kahili-1A well to intersect the targeted Kahili structure, with the Tariki sandstones being found about 9268 ft along hole and the 115 ft interval above 9383 ft more clearly exhibiting movable hydrocarbons.

Aussie partner Tap Oil estimates potential recoverable volumes at Kahili could be of around 14 mmbbls of oil and 18 bcf of gas. Earlier this year the Kahili-1 well encountered a 58.5 metre gross oil column and a four-hour drill stem test recovered a small amount of oil.