The well made rapid progress through sand sections several hundred feet thick where drilling breaks were accompanied by off-scale gas shows on the mud log.

“Electronic logs have been run and our analysis shows the well encountered multiple separate hydrocarbon bearing reservoir zones distributed over more than 2,000 feet,” said Nuenco NL’s managing director, Anthony Kain.

He said two unexpected faults were also encountered, which has resulted in shallower gas sands being present in 2-13 that were not present in 1-13.

The partners are now assessing the completion and testing programs for both the 1-13 and 2-13 wells and are considering drilling a possible new well (3-13) to the northwest of the pad in order to target the thick gas section found in 2-13, and to establish commercial production.

“What really pleased me about this well was the thickening sand section encountered as we headed back into the centre of our permits,” said Kain.

“The results off the mud log with off scale gas shows accompanying these plus 200 and plus 300 foot sand sections are outstanding which we may well seek to further understand with 3D seismic to define the trap we are starting to identify with these section 13 wells.

“Every well we have drilled so far in Lost Hills is a discovery which we have to test by opening up the respective wells but three out of three to now is promising to say the least.

“The testing will have to await the drilling of J.H 3-13 (since the drilling rig will be covering up the well heads of 1-13 and 2-13) but it will be underway soon with the objective of proving up a substantial gas discovery in our significant acreage position at Southeast Lost Hills (the current plan is to spud 3-13 within the next few days).”

Interests in the Jack Hamar joint venture are Nuenco LLC 37.5%, Orchard Petroleum Inc 37.5% and Nahabedian Exploration Group LLC 25%