Lakes said that the top section of the Strzelecki Formation, which flowed gas to surface in the Trifon-1, Gangell-1 and North Seaspray-2 wells, has the ability to hold a significant amount of gas within closure plus further potential for gas below closure, as was recorded to 2,600m in both the Trifon-1 and Gangell-1 wells.

The company said the structure, which encompass the three North Seaspray wells together with the Trifon-1 and Gangell-1 wells, will be now called the "Greater Trifon Structure".

Lakes added once a full assessment of the recovery of gas from the Trifon and Gangell wells by fracturing is completed, a decision on the location of the next well to be drilled on the structure will be made.

Lake also told the stock exchange that drilling of the Deadman Hill Stratigraphic core hole, also located in the PEP 157, has been delayed due to exceptionally wet weather conditions.

However the company expects drilling to begin on weekend following the arrival of a rig on site tomorrow.