AWE revealed on Tuesday that thewell had intersected the Kapuni F10 sandstone reservoir at 4023 metres.
It has so far drilled 677 metreshorizontally through the reservoir and has about another 681 metres to go untilit reaches a planned total depth of 5381 metres.
AWE said it had encountered oilshows and added and real time measurement logs were consistent with its pre-drillestimates.
The company had already hit the Kapuni F10 sandstone objective in the vertical section of the well withoil