FAR said background gas readings from the Vaquero-1 well peaked at 850 units over a gross interval of approximately 145 feet between 9,310 and 9,455 feet.

“Very preliminary interpretation suggests these shows correspond with the Wilcox A formation and conform to an amplitude anomaly evident on 3D seismic,” said a FAR drilling report.

“While drilling the above interval lost circulation was experienced in the well bore. Once circulation was restored and the hole conditioned a decision was made to run intermediate casing rather than risk the hole by running electric logs.

“As such, the above gas shows were not evaluated by cores or formation tests and cannot presently be confirmed by logs. Further evaluation of these shows is required prior to inferring any commercial significance and this will most likely be undertaken after the deeper objectives have been penetrated.

FAR is paying 11.25% of the drilling and completion cost of Vaquero-1 to earn a 9% working interest in all wells drilled within the area of mutual interest.