“Wire-line electric logs indicate two potential gas bearing formations between 1064 metres and 1152 metres with a combined thickness of 5 metres,” Brisbane-headquartered Texon said.

“Production casing will now be run in preparation for testing in the next 10 days with separate testing equipment.”

After running the production casing the drilling rig will be released.

The two previous wells in this program, Bilinga-1 and Stradbroke-1 also encountered gas in Frio sands. In both wells, production casing was run to enable further testing.

On January 30, Texon said a production test of 3.4m-thick gas-bearing at Bilinga-1 had flowed gas at 400,000 cubic feet per day.

“Surface production facilities are in place and it is now planned to construct a pipeline to connect the well for production of gas from this zone,” the company said.

“Initial sales gas production is expected to occur in February.”

The next shallow prospect the company tackles will be Avoca. Drilling is due to start at about the end of February.

Texon has a 100% working interest (75% net revenue interest) in these wells.