In a statement this morning, Otto said the gas flow, which stabilised at 2 million cubic feet per day, held special significance for the company.

“The discovery at Koyustu-1 is a seminal event in Otto’s short history, as the test marks the first hydrocarbons flowed to surface by the company,” chief executive Alex Parks said.

“Indications are that Otto and our JV may have a modest but commercial quantity of gas that we can now plan to rapidly develop during 2007.”

The first interval was flow-tested at a depth of 324-331m without stimulation.

The second main interval, at 247-255m, will be tested in the next few days before the rig is moved to flow test Otto’s first gas discovery, Bati Umur-1, targeting shallow gas in similar formations.

If both wells prove worthy of production, the operator will undertake a feasibility study to identify the best way to commercialise these fields.

A third, 2m zone identified from wireline logs in Koyustu-1 at a shallower depth of 215m will be left untested until the joint venture returns to bring the well onto commercial production.

The Edirne JV plans to meet in Turkey in the next week to discuss which of the other prospects will be selected for drilling once operations are complete at these two wells.

Once the wells have been evaluated, the JV will undertake a feasibility study to identify the best way to commercialise the fields.

Interests in the Edirne Licence are Otto (65%) and Incremental (15%).