But AWE says it is too soon to comment on the commercial significance of this new Bass Strait field gas discovery.

“As the well appears not to have intersected the gas-water contacts for most of the gas columns, formation testing and sampling is still underway to establish the down-dip extent of the gas accumulations,” AWE said in a statement.

Good gas shows were recorded within sandstones interbedded with shales over the intervals 2964-3000m, 3015-3156m and 3135-3156m, as well as in sandstones interbedded with volcanics over the intervals 3382-3387m and 3429-3432m.

Singlepoint formation sampling has confirmed gas art the following depths – 2968.7m, 2977.8m, 2982m, 3045.2m, 3057.2m and 3386m. Some of these samples have increased the gas zones previously identified on wireline electronic logs

Preliminary analytical data on samples to and indicate that the gas is good quality, being liquids-rich and having a low CO2 content.

Participants in T/18P are: Origin Energy Resources Limited (operator) 41.4%, AWE 22.6%, CalEnergy Gas (Australia) Limited 23.5% and Wandoo Petroleum 12.5%

First Australian Resources has also claimed an almost 1% royalty over the permit.