Until now, the Forbes Sandstone contained all of Orchard's other discoveries in the project area, in the Sacramento Basin, northern California.

Drilled last December, Edge 1-10 encountered gas shows in the primary Forbes Sandstone.

Since then, operator Orchard undertook a more detailed analysis of the well data and decided to test the deeper Guinda Formation.

Orchard said the well flowed gas at a stabilised rate of 500 thousand cubic feet per day. Further evaluation of the Guinda Formation is now underway, it said.

The well also confirmed gas in the primary Forbes Formation, which will be developed and tested along with the Guinda Formation.

Orchard executive chairman, Steve Graves described this new discovery as “extremely important" for the joint venture.

“It has now opened up other exploration opportunities to evaluate in the project area,” Graves said.

“The target sizes in the Guinda Formation are generally regarded as larger in size but do have higher exploration risk. Orchard’s historical primary exploration focus has been the Forbes gas sand, hence the name ‘Forbes Gas Project’.”

He added that having two highly prospective exploration targets added significantly more potential to this 3D seismic defined area.

The Edge 1-10 well is the second well in the current two well drilling program to encounter gas in the primary objective, Orchard said.

The company is now planning a new six well program for this year. Subject to rig availability, it expects drilling to start in the second or third quarter.

“Orchard’s knowledge and understanding of the Forbes area has grown tremendously and has now been added to by a Guinda discovery,” Graves said.

“We are building a solid base to move ahead with a long-term gas program to go along with our large leased acreage position.”

Graves said Orchard drilled five wells – four of which were completed – during the last two years exploring the Sacramento Basin.

Orchard and Livingstone are 50/50 partners in Edge 1-10 and the Forbes Gas Project.