Each well, located five miles south of Halletsville, in Lavaca County, Texas, should produce in the range of 1.5-2.0 million cubic feet of gas per day with the operator advising that the Scheinemann South well will be in production and selling gas within 10 days.

In addition to the Scheinemann South and Gerdes prospects, a further 6-8 prospects have been identified. The program will see at least two more exploration wells drilled during the balance of the year.

Given some level of early commercial success, it is anticipated that the program will last for at least 3-5 years and will be one of the cornerstones of the company's US exploration and development program for the medium term future.

Amadeus added that at current gas prices in the US, the Gerdes and the Scheinemann South wells will add between $US1.2-1.8 million to the company’s bottom-line on an annualised basis.