VicPet said wireline logs suggested the well, which had been drilled to a total depth of 1341m, had encountered a 5.5m gross gas zone with no water at a depth of 889m.
Agavero-1, which was targeting 700 million cubic feet of gas, was the second well to be drilled in a three-well campaign.
The earlier well, Donna Carlota-1, encountered 13.9m of gross gas pay (5.6m net pay).
The Margarita JV will conclude the program with the Climaco-1 well, aiming for 1.6Bcf.
Any commercial discovery from the three new wells will be brought online quickly, as the project area is intersected by a number of gas pipelines.
The campaign is a precursor to a higher-impact program targeting 30-200Bcf of gas in the second half of this year.
Empyrean Energy has a 44% interest in the Margarita project, Victoria Petroleum and Sun Resources 20% each and Wandoo Energy 16%.
