This was Livingstone’s first exploration well to be drilled since listing on the ASX and Orchard’s first well as operator of the project.

Orchard said the amount of net pay encountered was much greater than pre-drill expectations and significantly higher than discovered at the nearby Larner 1-12 well – a separate gas accumulation on production since earlier this year.

The company will now move to pipe and complete Larner 2-12, with a testing program to begin once a service rig is booked.

It said a commercial gas flow would be hooked into the production facilities at Larner 1-12.

“The success at Larner 2-12 goes a long way in supporting the new technical assessments of our prospects in the area and the ability to identify potential gas targets,” executive chairman Steve Graves said.

Drilling of the Forbes Gas Project’s next well is expected in the next few days at the Edge Prospect, Orchard said.

After that, the joint venture is planning a much larger drilling program for next year, Orchard said.

“The drilling at the Forbes Gas Project area in the Sacramento Basin in Northern California is an important project for OP Inc because it has a very large leased acreage position and is the Operator in this project,” Graves said.

“This area contains a prospect inventory covered by 3D seismic as well as containing existing production operated by OP Inc which enhances the commercial value of any discoveries.”

Orchard is partly carried by Livingstone through completion of the first three wells in the Forbes Gas Project.

Participants in Larner 2-12 are Orchard Petroleum (operator and 50%) and Livingstone Petroleum Inc (50%).