Cordingley Canyon 15-2, which is the third well in a 10 well program, recently reached a total depth of 5045 feet (1538m).

Marion says initial indicators were “very encouraging,” after gas shows were recorded during drilling.

The well will be completed and flow tested to stabilise flow rates after the Cordingley Canyon 15-1 and Ball Park Canyon-1 wells have finished drilling, the company said.

Completion and flow-testing will then start on these two wells, with an expected finish date in the March quarter, Marion said.

Marion expected all three wells to be completed for production.

In the Helper project to date, Marion has drilled and completed the KRR-1 well, which tested 1.3 million cubic feet of natural gas per day – more than four times the average flow rate for the area. The company is also currently completing and testing the KRR-2 well.

The Helper project comprises about 5000 acres along the northern edge of the Helper Field. This is part of the Drunkards Wash complex, the largest producing gas field in Utah.

Marion said it was aggressively pursuing a low-risk strategy to increase reserves and production of non-conventional natural gas onshore USA. The company plans to develop low-cost reserves by exploiting mature reserves and finding new reserves in existing producing areas.

One Marion's partners in the project is recently listed Australian-headquartered company Odyssey Energy.

Working interests in the Cordingley Canyon 15-2 are: Marion Energy (47.8125%); Odyssey Energy (11.25%); Stone Energy (25%); Pegasi Energy (7.96875%); and private interests (7.96875%).

Partners in Cordingley Canyon 15-1 and Ball Park Canyon-1 are: Marion Energy (63.75%); Odyssey Energy (15%); Pegasi Energy (10.625%); and private interests (10.625%).