Perth-based Orchard yesterday said the South Buckeye 1-18 exploration well has reached its targeted depth of 9600 feet (2926m) and has encountered gas in one of the objectives between 9315ft and 9345ft.

“Based on the electric logging of the well, there appears to be approximately 10 to 15ft of net pay in the Forbes Formation interval,” Orchard said.

“The amount of net pay encountered in this well is characteristic of Forbes Formation gas-producing wells in the area.”

Orchard said the joint venture will now set pipe and complete South Buckeye 1-18. A testing program to determine the commerciality of the gas discovery will begin once a service rig can be scheduled.

“A commercial gas flow at South Buckeye 1-18 could be put on production under our current agreements with gas buyers following completion of short pipeline connections to the well,” it said.

Drilling at the Heavenly Prospect is due to begin in the next few days.

The JV last month said once the prospects are drilled, operator Orchard Petroleum and Livingstone will evaluate the results and schedule the next phase of the drilling program.

Two follow-on targets at Buckeye and Heavenly have been identified and permitted for drilling if the initial wells are successful.

Prospects at Armstrong and Alpine Meadows have also been identified and permitted as part of the planned six-well drilling program.

In addition to the Forbes Formation, the JV said last month it had identified “significant” prospects in the shallower Starkey/Winters formations around 4000ft and deeper Guinda Formation below 9000ft.

Both operator Orchard and Livingstone have a 50% interest in the wells.