The co-venturers told the Australian Securities Exchange that operator Texas Crude Energy would sequentially frac and test three separate zones in Cretaceous aged carbonates of the Austin Chalk formation, with the deepest zone being tested first.

In addition, the joint venture is about to start mobilising the drilling rig to the next well in the Sugarloaf project, Kennedy-1H.

Kennedy-1H is designed to be drilled as a vertical well to a depth of about 12,000 feet at which point the well will be kicked off to drill a 5000 feet horizontal section into the upper zone of the Cretaceous-aged carbonate reservoir.

Providing the program is trouble-free, Kennedy-1H should be drilled and completed within 45 days, followed by fraccing and testing operations if successful.

Interests in Sugarloaf are Texas Crude Energy (operator with a 41.5% stake), Aurora (20%), Adelphi Energy (20%), Eureka Energy (12.5%) and Empyrean Energy (6%).