The well penetrated an estimated a 46-metre gross gas column in PEL 103, 90 kilometres north of Moomba in South Australia.

Following the strike shares in the company closed up 19 cents at 33 cents yesterday after it reported the discovery at its second exploration well, with earlier reports estimating the Yarrow resource to hold 72 billion cubic feet of gas. Innamincka raised about $6.25 million at 20c a share before listing in early November.

Innamincka is a 35% stakeholder and operator of the venture, In partnership with the Texas-based Vernon E Faulconer Australia Inc.

A preliminary estimate of recoverable gas is expected to be made in the week commencing January 5, 2004, following the evaluation of wireline log data currently being acquired.

The discovery well is the second in a four-well program planned by the company just west of the Queensland border about 25km southwest of the Acrasia field found by Beach Petroleum in 2002.