First Australian Resources, whose joint venture partners include Amadeus Energy and Sun Resources, said further gas shows had been encountered at its SL328-9 well at the Lake Long prospect in Lafourche Parish.

The company said the well was yesterday drilling ahead at a depth of 12,966 feet (3952m) in the Lower Hollywood Sands, where a drilling break with gas shows on mudlogs had been recorded.

Electric logs will determine the significance of these shows, it said.

Last week, the well encountered a total of 42 feet (12.8m) of gas pay in the Upper and Middle Hollywood Sands.

Elsewhere, Target Energy said its 25%-owned Snapper A-1 discovery well in St Martin Parish had been flow-tested and completed for production and was awaiting hook-up to a sales line.

During testing, the well flowed 2.1 million cubic feet of gas per day and 16 barrels of oil per day from the 4th Marg Tex Sand.

Meanwhile, Golden Gate Petroleum has entered Louisiana by acquiring a 48.75% working interest as operator of the Bullseye Prospect in the southern part of the state.

Exploration drilling is due to start in November at the prospect, which is estimated to contain 2P (proved plus probable) reserves of 12.5 million barrels of oil and 33Bcf of gas.

Under the farm-in terms, Golden Gate has agreed to pay 60% of the exploration well's costs, which are expected to total $US5.4 million ($A6.3 million).