The Melbourne-based company today said in a drilling program update that the well, which spudded on February 5, reached a total depth of 4789 feet (1459.7m) on February 8.
After electric logs were run, casing was set and the coiled tubing rig was released on February 10.
“Good oil and gas shows were recorded in the Belridge Diatomite Formation,” Orchard said.
“The Belridge Diatomite oil and gas shows are consistent with those seen across the South Belridge acreage position.”
The company said the rig is performing “up to expectations” and there has been an appreciable drop in drilling and completion time over the last two wells, which have lowered overall costs.
Meanwhile, the company’s SB 26-7 well, which spudded on February 11, will target hydrocarbons in the Diatomite and Etchegoin formations. The target depth of the well is about 5000ft.
Orchard said a stimulation program involving hydraulic fracturing by Haliburton of the SB 12-7 and SB 13-7 wells was finished on January 23 and each well successfully under went an eight-stage fraccing program.
A service rig was brought in to complete the clean-out of both wells. The SB 12-7 well was put on production on February 9 and the SB 13-7 well is being put on production this week.
A stimulation program of the SB 5-12, 6-12 and 27-12 wells began this week. It will be the first time that three wells will be fracture stimulated together in order to reduce completion costs.
Participants in the drilling program are operator Orchard and Maxim TEP, both with a 50% interest in the new wells.
Commenting on the $176 million takeover offer by Crosby Capital Partners, Orchard said as of yesterday, the predator had acquired a 40.29% interests in the company, including acceptances under its offer.
Crosby’s subsidiary Eskdale Petroleum is offering a revised cash offer of 81c for each share – a 39.7% premium to Orchard’s closing share price the day before the offer was made.
“As no alternate takeover proposals from other parties have been received, the board encourages shareholders to accept the offer now in the absence of a superior proposal,” Orchard said.
The offer has been extended to March 1.
