The Perth-based company today said total gas readings peaked at 536 units from a background of about 230 units.
The economic significance of the gas indications will not be known until wireline logs are run and interpreted and flow testing has been evaluated after the well has reached total depth of 6400m, it said.
Early last month, the joint venture announced that while the well had encountered 92 feet (28m) of gas pay in a secondary target, the zone may not flow at commercial rates.
Sugarloaf-1 partners are Texas Crude Energy (operator with a 41.5% stake), Aurora (20%), Adelphi Energy (20%), Eureka Energy (12.5%) and Empyrean Energy (6%).