Carnarvon Petroleum (ASX:CVN) holds a 20% stake in the Dorado-1 exploration well on the North West Shelf of Australia, with partner Quadrant Energy having a 80% position and is the operator.
The joint venture has now commenced planning to drill the well, with the aim to discover additional resources that can be combined with any Roc development - which is circa 15 kilometres away.
Carnarvon estimates the primary Caley Sandstone target contains a mean prospective resource of 545bscf of gas and 31mmbls of condensate.
Drilling is expected to commence in the second half of 2017.
Adrian Cook, managing director for Carnarvon, commented:
"This is a tremendous opportunity to test another quality prospect in the Bedout sub-basin.
"Confirming significant hydrocarbon volumes with this well would strongly underpin the economic proposition in this basin.
"This well could also play an important part in determining the future development scenarios for the Roc and Phoenix South gas and condensate discoveries.
"A significant Dorado discovery could be developed as the tie-in point for the Roc and Phoenix South resources with options for the gas to be used purely for domestic use, and/or for LNG purposes."