Operator Bow Energy said the well began flowing gas following the flow of water into a temporary holding dam at a rate of 1207 barrels per day on Saturday morning.

The company is now accelerating a short-term drawdown test over the next couple of days to monitor fluid levels and gas rates.

After the five-day test, Bow plans to temporarily shut-in the well until a larger permanent holding dam for the water is built in early July.

Once the dam is completed, Bow plans to carry out a longer-term flow test and expects gas flow to increase during the test period.

Managing director Ron Prefontaine said the initial results for its first single-well CSM production pilot is another step towards gas reserves certification for the project.

The Don Juan joint venture also reported a stabilised gas flow of 360,000 cubic feet per day late last year at Taringa South-1 well, 19km northwest of Carnarvon-1.

Bow also said it plans to begin exploration drilling of four additional core holes with a new drilling contractor next week.

Following the completion of the gas desorption results from the next round of core holes, together with production test results, the joint venture should be in a position to start booking gas reserves in the last quarter of 2008, Bow added.

A portion of the future gas reserves from the Don Juan CSM project are intended as feedstock for Bow's first small scale LNG plant, which is likely to be near Carnarvon-1.

The Don Juan CSM partners are Bow (55%) and Victoria Petroleum (45%).