US energy company Hess Corporation has discovered natural gas in upper Jurassic sandstones on the Northwest Shelf.
The company said its Glencoe-1 exploration well had encountered 92 feet (28 metres) of net gas pay, in line with pre-drill estimates and nearby Jurassic discoveries.
Glencoe-1 is the first of four exploration wells being drilled on the WA-390-P Permit by Hess in 2008.
"While recognising this well is only the first in our WA-390-P Permit, the result is very encouraging," said John O'Connor, Hess President of Exploration and Production.
Glencoe-1 was drilled in 3,678 feet (1,121 meters) of water by the semi-submersible rig, Jack Bates. Following the completion of the Glencoe-1 well, the Jack Bates rig will move 14 kilometers east to drill the Briseis prospect. The Briseis-1 well will test a separate structure in the same permit.
Hess holds a 100 percent interest in the 780,000 acre WA-390-P Permit.