The Terry Ewing No-2 well will follow up the Terry Ewing No-1 well which is currently producing about 200,000 cubic feet of gas per day.

During the completion phase of the No-1 well, the Hosston sands were damaged beyond repair such that a replacement well is needed to recover the estimated 8 billion cubic feet of gas remaining.

Provided the Terry Ewing No 2 well is placed into production from the Hosston formation, the existing No 1 wellbore will be reentered.

The operator conducted a study of six field wells in the Yellow and Orange Hosston Sands to determine how those wells performed based on similar pressure data measured in the Terry Ewing well. The average per well flow rate determined by the study was 3.1 million cubic feet per day suggesting better rates are possible with a replacement well.

A new proposal has also been put to FAR and its partners to participate in the farmout of a deep Cotton Valley test on the leases. The proposal is based on Anadarko drilling and completion activity to the North (Vernon Field) where over 50 wells have been drilled in the "Lower" Cotton Valley.

FAR is currently considering the proposal, which if successful would see an industry partner pick up the likely $US3 million well cost.

FAR has a 9.375% interest in the No-1 well, associated production equipment and proposed No 2 well.