Sidewall cores and logs run over the interval 7700 to 7773 feet (2347-2369m) showed gas indications of 1070 parts per million against a background of 22ppm, while other data indicated that the 74 feet of net pay was hydrocarbon-bearing.

The company said the oil quality was between 34 and 38 API, while the permeability and porosity of the sandstone was much higher than expected.

The well has now been cased and cemented ready for future production. Icon said the well would be completed once the deeper target is penetrated over the next 1100 feet of drilling.

Australian Mineral Interests-1 is the first of a three-well exploitation program targeting zones up-dip of existing oil production around the Bayou Choctaw salt dome.

It has reserves potential of 1.8 million barrels of oil in several zones that are productive down-dip of the well’s location. It was deviated to penetrate each objective zone in an optimal position to a planned true vertical depth of 2775m.

The well is located in the Victory Financial Lease. Horizon Oil has a 14% interest in the Australian Mineral Interests-1 well and will have a 19.8% interest in the following two wells. Icon has a 19% stake in the lease and is fully-carried through the drilling by remaining equity holder CLK Energy.

Another Australian JV, comprising Perth-headquartered juniors Amadeus Energy and First Australian Resources, as well as private US interests, recently drilled the Schwing A-1 well in the Bayou Choctaw area but it was a dry hole.