“Increased gas readings were noted when the formation was penetrated and heavier hydrocarbons (up to C5) were recorded,” said a company statement.

“Currently 9 5 /8 inch casing is being run and after cementing, our intention is to cut a core and, if warranted, run a Drill Stem Test of the interval below the casing shoe. It is estimated the well will drill out of the casing shoe early Thursday morning.”

An overriding 5% wellhead royalty is payable to former permit holder, Roma Petroleum.

Lakes also said flow tests on the Wombat-1 well were continuing, utilising varying choke sizes with encouraging results.