Empire Oil & Gas said it has found a new light oil play after its Red Gully-North 1 (RGN-1) well confirmed the presence of oil, with associated gas, in the Red Gully Field in Australia’s Perth Basin.

The Western Australia-based company said analysis is underway to determine commerciality of the discovery.

The news March 10 followed analysis of a well-testing program completed in January. About 1,050 barrels of oil were produced from the Upper Cattamara C sand during a flow test. Log analysis on the well indicate a P90 net 5 m of oil pay with greater than 9% porosity, the company said in a news release.

Empire said the discovery “opens up a new light oil play in EP [exploration permit] 389 and PL [production license] 18/PL19” near its existing production hub.

“The initial pressure build-up results show no indicative reservoir pressure depletion over the period of the tests with a bottom-hole flowing pressure at the end of the C sand second flow test of 2,700 psi at an average rate of 405 bbl/d,” Empire said in the release.

The company plans to perform a three- to six-month extended production test starting in third-quarter 2017, following the completion in April of a light oil resource volume assessment, to help determine the commerciality of the discovery. If successful, the company said it will book oil reserves for the field.

“Assuming adequate reserves are established, Empire will commence commercial production at RGN-1, either as a standalone operation or tied back into Empire’s Red Gully Production Facility,” Empire said.