In a statement today, the Perth-based company said the Riddle-5 well – the third in an extended nine-well program – flowed gas for more than 15 hours after encountering the interval at a depth of 790 feet (240.8m).

Drilling recommenced to a total depth of 850ft once the gas flow stopped.

In addition, the oil zone was seen at the same height above sea level and oil was subsequently produced into the mud pit.

“Without the assistance of the gas lift seen in Riddle-7, oil was unable to be produced to surface but was produced as part of the drilling operations,” Westralian said.

“The rig was released and preparations are being made to install a beam pump on the well to begin production testing.”

Production testing of the program’s first well, Thomas-1, will take place in the next three to four weeks, Westralian said.

Looking forward, Westralian plans to drill the fourth well, Riddle-6, about 600ft north of Riddle-7.

After this, operations will move to its Stockton lease to drill three wells and then to the York lease to drill a further two wells.

The company wholly owns seven oil leases in Kentucky, which contain both producing and shut-in wells.

It said a number of the dormant wells, which have previously produced between five and 15 barrels of oil per day, were drilled more than 30 years ago during a time of low oil prices.