The report, undertaken by RPS Energy, is believed to be the first independent reserves audit undertaken in this field.

1P (proved) reserves were estimated at 6.62 million barrels, while 3P (proved, probable + possible)reserves were 19.14 million barrels.

In related news, the company posted a $10 million oil sales revenue result for the June quarter, thanks to high oil prices and production from Selmo.

Chairman Chris Cronin said Selmo, which was acquired following Incremental’s initial public offering in October, produced 132,511 barrels of oil during the three-month period.

“Although production levels were below target in April due to labour problems related to renegotiation of the industrial agreement covering field staff, field operations returned to normal in May,” Cronin said.

“The continuing high oil prices and steady production have kept us strongly cash flow positive during the quarter.”

At the end of the period, Incremental had $9.5 million in cash and $7.1 million in receivables.

Also during the quarter, the company paid $1.3 million to buy a drilling rig suitable for field operations.

Meanwhile, Incremental says its ultra short radius (USR) drilling program at Selmo is now well underway, with cement plugs successfully set in two of the six wells.

The three-month program involves re-entering six of the Selmo wells and performing a horizontal completion to boost production.