The Sydney-based company is the subject of a friendly takeover bid from fellow US explorer Tomahawk Energy.

In Louisiana, the company said its Callaghan-1 exploration well is targeting 21 billion cubic feet (Bcf) of gas and is expected to take 21 days to reach a total depth of 11,500 feet (3505m).

Meanwhile in Texas, K2 has acquired a 10% working interest in the Samano East Prospect in Starr County, and 7.5% of the Alex Prospect in Hidalgo County.

At Samano, the joint venture proposes to drill an infill development well in the Flores field, which is targeting two potential gas sands with the potential to hold more than 5Bcf of gas.

K2 expects its share of costs for the well, which is due to spud in three months, will total about $US350,000.

The Alex Prospect joint venture also plans to drill an exploration well targeting 24Bcf of gas and 360,000 barrels of condensate in three months time.

K2 said the prospect, in which it plans to spend $350,000, was located close to pipeline infrastructure.