Kimberley Oil exploration manager John Karajas said the prospect resides in a geological structure zone, the Sunshine Transfer Zone, over which a well developed series of faults is inferred to have extensively fractured hard limestone in sub-surface.

"Hydrocarbon indications that have been encountered at the edges of this fractured zone include a small oil recovery in Watte-1, drilled in 1994, as well as strong gas show in Lloyd-1, drilled in 1990," said Karajas. "Otherwise, the prospect remains to be tested by the drill."

Karajas added evidence that the Sundown Transfer Zone is a major migration zone for hydrocarbons is provided by the clustering of the Sundown, Lloyed, Boundary and West Terrace oilfields.

Kimberley Oil spokesperson Keith Spencer said the company was hoping for a better result from the Norman Prospect after the failure of last year's extensive workover of three wells to increase production from the Blina oilfied near Derby.

"Our specialist geologist is confident of his interpretation of 100 to 300 million barrels of oil in place and we are confident that the interpretation matches our expectations," Spencer said. Currently, the company is seeking farmin partners to undertake a drilling program.