Previously, the company announced it had identified two oil-bearing zones, but now says that results from recent testing indicate a third zone, over a depth of 5703-5900 feet, has also produced on a swab rate of about 70 barrels of oil per day.

Spudded in late October, Selmo-22 is now being completed over the three zones, with the water-bearing zone being isolated by a ‘scab-liner’.

“The success of the testing programme in Selmo-22 shows that a methodical approach can turn a well that produced mainly water after the drilling of the horizontal can be transformed into a profitable producer,” Incremental managing director Gerry McGann said.

“This testing approach has applicability to many other wells in Selmo, both horizontal and vertical.”