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The test resulted in a stabilised gas flow to surface from Triassic-aged rocks, the company said.
No accurate pressure readings nor flow rates could be obtained due to failure of pressure gauge on the rig. Wireline logs at the conclusion of drilling operations will be used to confirm results.
"The company considers that the gas encountered to date is highly encouraging," Sunshine Gas said.
"The potential commerciality of the discovery is currently being assessed and will become clearer once all of the data is collected and analysed at the end of the well."
