As of yesterday, Empire reported that the well was drilling ahead in a 12¼-inch hole at a depth of 280m.

With a planned total depth of 2550m, Moriary-1 is being drilled to test an anticlinal structure with Jurassic-aged reservoir objectives on the 'F', 'J' and 'L' sand of the Cattamarra coal measures.

Potential recoverable oil reserves are estimated to be 3 million barrels in the 'F' sands, 4MMbbl in the 'J' sands and 4MMbbl in the 'L' sands.

Moriary-1 will be immediately followed in April or May by a well in the Carnarvon Basin's EP 439, Lake Macleod-1. This will be followed by nearby Star Finch-1 in EP 5/06-7, providing that well receives pending formal approval.

Empire has engaged drilling engineer Hugh Edwards to oversee the company's 2008 drilling program in the Perth and Carnarvon basins, and has received all necessary state government approvals and landowner access agreements for Moriary-1 and Lake Macleod-1.

Stakeholders in the Moriary-1 well are Empire, with 40%, Allied Oil & Gas (25%), ERM Gas (25%) and Black Fire Energy (10%).

In related news, Empire has farmed-out interests in three exploration permits, in the Carnarvon Basin, to DVM International, which has rebadged itself as a petroleum explorer.

The former media advertising company released a statement to the Australian Securities Exchange outlining the farm-in deal, which will see it participate in two onshore exploration wells in the next two months.

DVM will fund 40% of the cost to drill the Star Finch-1 exploration well – targeting up to 50 billion cubic feet of gas – in order to earn a 20% interest in the EP 5 permit.

In addition, it will pay 20% of the Lake MacLeod-1 exploration well to earn a 10% stake in EP 439 and EP 6. This well is targeting up to 150MMbbl of recoverable oil.