Kentucky-based operator Hay Exploration drilled the third and final well to a total depth of 688 metres and intersected 148 metres of Devonian Shale, Norwest said.

Wireline logs have been run and are currently being evaluated.

In addition to the shale potential, hydrocarbon indications were present in the shallower, Berea oil section. The Berea and other zones are secondary targets in all three wells.

The first two wells, which have been fracced and completed, are currently shut in to determine well pressures after flowing gas at modest, unstabilised rates.

Norwest said a frac and completion program for the third well would likely involve a dual stage program in the Devonian Shale and the Berea.

“If the results on the Berea are encouraging, then additional Berea completion programs for the first two wells will be considered,” Norwest managing director Joe Salomon said.

Partners and their interests in the Little Sand Project are Norwest Energy (project operator and 60%), Alto Energy Inc (30%), and Hay Exploration (drilling operator and 10%).