Melbourne-headquartered Marion said strong gas shows were encountered from all target zones during the drilling of the ASD 6-17 well.

The primary target was the Ferron Horizon, with secondary targets being the shallower Emery reservoir and the Mancos shale section.

The well took much longer to drill than expected due to a significant number of mechanical breakdowns by the original drilling rig.

These resulted in the company replacing the rig with a new drilling rig which was much more efficient – and drilling the well to total depth.

Marion said it had retained this new rig for the remainder of its 2007 drilling program.

The ASD 6-17 well was drilled further north than previous wells on the Clear Creek structure.

“This well will successfully increase the proven area of structural closure of the gas accumulation at Clear Creek,” said Marion chief executive Jeff Clarke.

“Following the recently reported substantial gas reserves at Clear Creek, the significance of this successful well is that it is the first step towards expanding the area known to contain recoverable gas as well as confirming the results of the reserve report,” he added.

Last week Marion said its total net 2P reserves now stood at to 264 billion cubic feet.

Clarke said the company would now drill the ASD 3-17 well from the same surface location and would commence completion activities on both wells once the second well reached total depth.

Test results from the second well would be released once a sustainable level of natural gas production had been established.

Marion’s working interest in these Clear Creek wells is 92.5%.