The Atwood Eagle will drill the well on the WA-435-P permit.
According to partner Carnarvon Petroleum, the Phoenix South prospect is a multi-tcf gas prospect close to proven gas in the Phoenix-1 well. Carnarvon will be free-carried on drilling (up to an agreed cost cap).
Recently, the company completed further technical studies on the permit, identifying a potential new oil prospect and a new stratigraphic gas prospect. Both could be tested by the Phoenix South well, subject to a technical review by the operator.
A success could open up prospectivity in the wider region for oil and gas, Carnarvon adds. The company has interests in around 28,000 sq km (10,811 sq mi) of contiguous exploration acreage.