The Perth-based company today said the current operation at the well, which spudded on February 7, is running a 9 5/8-inch casing to 8720 feet (2657.9m). The planned total depth of the well is 12,400ft.

Golden Gate said during drilling, a “kick” was taken and gas flowed to surface.

Standard well control features were taken, the well was shut in and the mud weight increased before continuing to drill through the prospective gas zone.

The company said subsequently, an influx of water caused the properties of the drilling fluid to deteriorate and resulted in the drill string becoming stuck at the bottom of the well.

Golden Gate moved to stabilise the well by running the 9 5/8-inch casing.

Once the casing is run, the well will be deviated and the prospective gas zone re-drilled and evaluated with electric logs.

“The electric logs will enable the identification of any gas/water contact and thereby the thickness and quality of the gas zone,” Golden Gate said.

“This is the first of three objectives in the well and so far the results are very encouraging.”

Wilson is a shallow prospect similar to the company’s already producing discoveries at Laplaya, Dunn Deep and Plum Shallow.

These wells are currently producing at a combined rate of 6.3 million cubic feet of gas per day. Golden Gate’s share of this production is about 2MMcfd.

Wilson has an unrisked potential of 21 billion cubic feet.

Partners in the ST Kindee-1 well are Golden Gate (58.23%), Modena Resources (10%) and Pantheon Resources (31.77%).