Orchard said "Sledge Hamar 1-7 has encountered significant oil and gas shows in both its primary and secondary objectives, the Diatomite and Stevens sections.

"Electric logs have been run and are currently being interpreted. The well is currently being cased for an anticipated extended production testing program," it said in a statement. More information will be available in the next few days.

Trading in Orchard shares picked up on Friday with 1.3 million shares through and finishing at 11.5 cents, compared to no trade two days before, unchanged at 9.1 cents.

This morning trading opened at 15.5 cents before easing to 14 cents on 1 million turnover.

The participants in Sledge Hamar 1-7 are: Orchard 10%, Ivanhoe Energy 40%, and Nahabedian Exploration Group 50%.