The Shary-2 well is targeting these gas reserves from the 8200ft Sand and the 8400ft Frio sand, which is productive in the Shary-1 well.

The Sydney-based junior said although the discovery well was only producing 90,000 cubic feet of gas per day, it was a steady producer – indicating it was part of a larger reservoir.

“Due to the water in the sand, it is not practical to fracture stimulate the well at this location,” the company said.

“Armed with this information, a review of the 3D seismic across the fault block indicates the Shary-2 [offset] well should encounter the 8400-foot Sand approximately 60 feet higher on structure at the proposed location.”

Operator Kaler energy expects the well to cost $US1.4 million to complete.

The gas pipeline connection is already in place, with production and cash flow expected two or three months after the well is logged.

Tomahawk Energy has a 6.8% working interest in the well.