Corks were popping on Brut bottles in the office of First Australian Resources NL with the company’s discovery of gas in the US recently.
The Perth-based junior, which has been chasing hydrocarbon in the oilfields of Louisiana for some years, has had confirmation by logging that the Silmon etal #1 well had come up trumps with a commercial gas flow.
Production pipe had been run in the Silmon etal #1 well following confirmation of gas pay in the Vaughn Cotton Valley objective between 2,990 and 9,993 metres in the South Drew Field, Ouachita Parish, Louisiana.
The well had been fracced and flowed back gas, condensate and frac fluid with a 5.6m gas flare.
FAR chairman Michael Evans said the well has tested 1.07 million cubic feet of gas and fifteen barrels of condensate per day on a 16/64 inch choke and flowing tubing pressure of 852 psi.
The operator, Goodrich Petroleum Corporation, believes the well is capable of higher rates.
Goodrich has advised that the well will be turned to sales in two weeks.
Mr Evans said production testing of the well has favourable implications for a field development programme with up to four 2,968m Cotton Valley test wells possible.
FAR has a 10 per cent interest in Silmon etal #1.
The South Drew Field was discovered late in the 1970s and produces from a strandline Cotton Valley sand covering much of North Louisiana.
