Its first US well, McClure 1-1 also in the northern Sacramento Basin, failed to encounter any commercial hydrocarbons in either its primary or secondary objectives.

But at Plymire 4-14, mud logs and electric logs indicate possible intervals of productive sands in the Princeton Gorge formation, the company said.

A decision has been made to drill ahead into the top of the Cretaceous and set intermediate casing before drilling ahead further to the Forbes and Guinda Sand objectives, it said.

“At this stage it is too early to make any comments on reserves. However, nearby well control with untested gas indications, supports confidence that in the event of a successful test a commercial pool is highly likely,” managing director Rodney Foster said.

“Hydrocarbon shows on mud logs have now been confirmed with electric logging. However, only successful production testing will confirm this well as a discovery.”

Upon a successful production test, the company believes that the well will yield the most northern gas flow in the Sacramento Basin, Foster said.

“Any gas flow will have significant implications for an area that is grossly under explored,” he said.

“The area has abundant shallow drilling opportunities with good access to gas transportation infrastructure.”

Pacrim, which has a 100% working interest in the Plymire Road 4-14 well, has over 50,000 acres under lease in this area of the basin.