Empire Oil said background gas had steadily increased from the 2100m depth to register 58 units with 5,900ppm of methane and 220ppm of ethane. It said the well was currently at 2517 metres and drilling ahead in an 8.5 inch hole.

Empire said the increase in the gas readings of the secondary Yarragadee Formation was encouraging. The main target zone is at 3,300m.

The company has previously said the gas in place estimate is 557 billion cubic feet.

Partners are Empire (49.211%), CalEnergy (40.789%) and Nexus Energy (10%).