KEY PETROLEUM can proceed with the drilling of its Dunnart 2 well in May after the group received all required approvals from the Western Australian Department of Mines and Petroleum.

In its quarterly profits statement, Key said flow testing of the Dunnart 2 well would be the company’s focus for the next quarter, with tests aiming to definitively determine the movable fluid in the Bookara reservoir sands.

The flow testing campaign will be carried out by Drilling Contractors Australia (DCA) using a completion with a 3.5 inch tubing string.

The well, located on its Perth basin exploration permit EP 347, is to be drilled updip from the Dunnart 1 well, which the company said had recorded excellent oil shows through the Bookara sandstone.

In an announcement, Key said the necessary long lead items for completion and testing operations at the Dunnart 2 well were in Perth, ready for mobilisation to site.

These include pup joints and tubulars and wellhead equipment including a Christmas Tree, tubing hangers, gauges and valves.

DCA Rig 6 will be moved to the sell site by early May, Key added, while onsite office and generator power facilities were to be mobilised shortly from the company’s operations base, located south of Dongara.

“Key is also in discussions with two other oilfield rig contractors regarding a larger campaign in the Perth basin and assessing whether any of their rigs could be utilised to undertake any workover activities in each of West Kroa 1 and Stokes Bay 1 in the Canning basin,” the company said.

Key Petroleum is the operator of EP 437, with a 43,47 per cent stake. Rey Resources also holds a 43.47% stake and Caracal Exploration holds the remaining 13.06%.