Smegsy-1, in the South Australian permit PEL106 of the Cooper Basin, will now be cased and suspended as a Permian gas discovery.

The well, drilled to its Total Depth of 2976m, is located in the South West Patchawarra Trough five kilometres from the Jack Lake Gas Field and 10km from the Moonanga and Raven Gas Fields.

“This is a pleasing outcome as Smegsy-1 will always have an historic place in Enterprise Energy’s history, being our first well since joining the bourse,” said Enterprise managing director, Warren Leslie.

“Significantly for our shareholders, it presents the possibility of gas revenue within our maiden 12 months on the ASX and that bodes well for the sourcing and financing of future drill opportunities.”

Operated by Great Artesian, preliminary assessment of wire-line logs and FMT pressure data on Smegsy-1 confirmed the presence of several gas bearing zones within the well.

However, a third drill stem test attempted yesterday over the interval 2735.5 - 2740.5m was a mis-run due to enlarged hole conditions and the inability to obtain packer seating.

Enlarged hole conditions throughout the Permian section, will also prevent further open-hole tests.

Enterprise Energy is earning a 25% interest in Smegsy-1 with Great Artesian holding the remaining 75%.