The test was run over the interval 1340-1365m through a 56/64-inch choke with a wellhead flowing pressure of 1071 psi, according to Santos and joint venture partner Cue Energy.

In a release to the Australian Stock Exchange this morning, the partners said the results were encouraging, however, further appraisal is required to confirm the potential of the resource.

Condensate was produced at a rate of 4 to 5 barrels per million cubic feet of gas.

Santos, which holds a 40.5% stake in the well, said it was currently completing testing work before the well would be plugged and abandoned as planned.

Last week, Cue Energy Resources said the gas discovery was particularly encouraging, given that the well was drilled only 7km west of the Oyong oil and gas field, where a platform has been installed and a pipeline was planned to supply gas to a power station at Grati in east Java.

Cue advised last week that drilling at the well had encountered a gross gas column of 141m between 1242m and 1383m, located in the same early Pliocene Mundu Formation limestone as the productive reservoir in the nearby Oyong oil and gas field.

Santos said the drilling rig had now moved to the Madi-1 exploration well in the neighbouring Madura offshore PSC. It is then planned to return to the Sampang PSC to drill the Wortel-2 appraisal well next month.

Participants in the Sampang PSC are Santos, Singapore Petroleum Sampang (36%), Cue (13.5%) and PT Petrogas Oyong Jatim (10%).