It said the joint venture has endorsed the aggressive approach of the operator to keep the rig drilling rather than stop it (and potentially lose the drill rig) while it brings in a service rig to test a well before proceeding.

It said the operator had decided to case the wells instead of using packers as the multiple sticky clay zones posed a threat of getting stuck down hole.

“We are very happy now to have four appraisal wells with steel casing set and cemented in place that have come in on time and on cost and which we will start to open up this week to define this gas play.”

“We believe the results we have been getting from mud logs and e logs justify this approach providing us with multiple zones to examine in this testing program.”

In other news Nuenco completed a shareholder purchase plan (SPP), raising $850,350 million in addition to a recent $1.65 million placement.

Funds raised under the SPP and placement will be used to fund the company’s working interest in the South East Lost Hills and San Emidio regions.