While drilling through the Caley Member, a number of sandstone intervals were encountered from 5,200 metres to 5,300 metres that were interpreted to be porous.
Elevated gas readings and increased resistivity were observed across these sandstone intervals that indicate the presence of hydrocarbons.
Wireline logging to be undertaken
The positive observations in this section of the well now warrant wireline logging which will be undertaken from 5,200 metres o 5,393 metres.
The aim is to obtain more definitive results regarding the nature of the hydrocarbons (oil, gas and condensate) and the characteristics of the reservoir within the 5,200-5,300 metre zone.
The Phoenix South-3 well is one of two offshore wells being drilled by project partner and operator Quadrant Energy.
Recent discoveries at the nearby Dorado-1 well have sent the Carnarvon share price soaring, last trading at 63 cents.