Santos (ASX:STO) says drilling at Dorado-2 appraisal well in Western Australia has confirmed the presence of strong oil and gas resources.
Santos owns an 80 per cent stake in the field, the rest is owned by Carnarvon Petroleum.
The well was drilled down-dip approximately two kilometres from the Dorado-1 discovery and encountered 85 metres of net reservoir in the primary Caley Formation.
As expected, an oilwater contact was intersected at 4,003 metres, with 40 metres of net oil pay encountered.
Preliminary wellsite analysis indicates this upper zone is oil-bearing, but is subject to further analysis to confirm the hydrocarbon phase.
Shares in Santos (ASX:STO) are trading 2 per cent higher at $6.79.