Perth-based Livingstone yesterday said the well was spudded using the Kenai-3 rig and is currently drilling ahead after reaching a depth of 298 feet (90.8m).

Heavenly 2-28 is targeting several potential gas-bearing stratigraphic traps in the Forbes formation, with multiple nearby follow-on targets if successful.

Livingstone said the prospect is analogous to the gas discoveries made at the Larner 1-12 and 2-12 wells, both currently on production, and the recent gas discovery at South Buckeye 1-18.

It said South Buckeye 1-18 would shortly undergo testing to determine the flow rate.

The Heavenly prospect is about 7km southwest of the producing Larner wells, and about 7km northeast of the South Buckeye well.

The prospect is expected to take about 15 days to reach target depth of 9700ft.

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.