The junior explorer told the market this morning that after it finished drilling the RR-8-19 well, it spudded a new directional well, RR-1-30, which is drilling ahead at a depth of 2900 feet (883m) towards the main objective in the Ferron reservoir at a directional depth of 7000 feet.

The RR 8-19 had encountered a zone at 1800 feet that flowed oil to surface during drilling.

Likewise, Marion said the RR 1-30 also flowed oil to surface during drilling from what appeared to be the same interval.

The closest oil production to the Clear Creek Unit is more than 64km away.

Marion said both wells needed testing to the economic viability of this potential reservoir.

“Should this significant oil show prove to be productive, this will only further enhance the value of Clear Creek which has established gas production in the Ferron reservoir and has also encountered gas flows while drilling in both the Bluegate Shale and Emory sections,” Marion chief executive Jeffrey Clarke said.

Testing will occur once the RR 1-30 has reached total depth and a third well, the RR 7-20 has been drilled from the same surface location.

Marion has a 92.5% working interest in these wells and the Clear Creek Unit.