Eromanga said the joint venture received environmental approval for the extended production test and expects to receive requisite approval from ANP, Brazil's oil regulator, by early August.

PTA-3 was suspended as a future producer in March on receiving consent from ANP, environmental approval, completion of an off take agreement with Brazil's national oil company Petrobras and power being provided to site.

According to Eromanga, civil works are underway, orders have been placed for all the production facilities including tanks and truck loading equipment, and the agreement with Petrobras is being developed.

In anticipation of the extended production test results, Gavea has proposed an aggressive, full-field development plan based on production from 14 wells, with peak rates of about 2000 barrels of oil per day within 2-3 years, Eromanga said.

PTA-3 is the first well in the JV's two-well program in the Sergipe Alagoas Basin.

The second well, Nord-1 SE, in Block 430, was declared as a discovery on May 20 and is waiting for equipment to mobilise to site to conduct a flow test.

Eromanga holds a 40% stake in the two blocks, while the operator Gavea has the remaining 60%.