Edge 1-10 was drilled to a total depth of 7860ft (2396m), encountering gas in the primary objective at about 6300ft (1920m), the companies said.

Electric logging of the well indicated multiple gas intervals in the Forbes sandstone, similar to other gas accumulations in nearby producing wells, according to Orchard and Livingstone.

Orchard, the operator, will now set pipe and complete the well. A testing program is due to begin early next year, following testing of the Larner 2-12 well.

“A commercial gas flow test at Edge 1-10 will require an easy-to-construct two-mile (3km) pipeline, before production can commence,” Orchard executive chairman Steve Graves said.

Edge 1-10 is the second well in the current two-well drilling program to encounter gas in the primary objective. Orchard is currently planning a new six-well program for the Forbes area in 2006. Subject to rig availability, drilling is expected to start following the wet season in the second quarter.

Orchard is now assessing the possibility of prioritising other targets near the Larner 2-12 and Edge 1-10 discoveries based on the success of these two wells, the companies said.

Livingstone executive director Craig Burton said the success of current two well drilling program validated its exploration strategy and supports the new technical aspects of its prospects.

“Livingstone is extremely pleased with the successful discoveries at Larner 2-12 and Edge 1-10, being both wells drilled since Livingstone became an equal 50% partner in the Forbes Gas Project,” Burton said.

“With this enhanced ability to identify large potential gas targets on the Forbes area, many new wells are being planned for future drilling programs.”

Participants in Edge 1-10 are: Orchard Petroleum, Inc. (operator and 50%); Livingstone Exploration, Inc. (50%).