“The target section in Champagne Creek 5 showed a significant hydrocarbon anomaly on wire-line logs,” the company said in a statement.

“The interpreted hydrocarbon bearing interval is currently planned to be tested as part of a cased-hole testing program using a work-over rig.”

Champagne Creek-5 was designed to evaluate a shallow gas sand present in the previous wells drilled on the structure, according to Sunshine Gas. This sand was not fully evaluated during drilling of the earlier wells as they were primarily designed to investigate deeper targets.

“Pre-drill, it was planned to carry out flow testing in the cased-hole as part of a program in more than one Champagne Creek well to achieve economies of scale,” the company ssaid.

“Successful flow testing will allow reserves to be calculated and commercialisation options to be fully assessed. Results of the Champagne Creek-3 preliminary gas analysis shows that the sample acquired during flow testing is comprised predominantly of methane with only relatively minor other components.”

Interests: Sunshine Gas Limited 100%