The company has also completed its first oil well - Snell Heirs 9-13 - for commercial production.

"This is a particularly pleasing result as the company’s original exploration thrust was gas, hence discovering oil and bringing it into commercial production represents a good technical and commercial outcome," Tomahawk said.

The Snell Heirs 9-13 was drilled in December as an offset or accelerator well to the discovery well bore, Snell Heirs 8-13, as part of Tomahawk's strategy to begin production from the secondary conventional formations in a separate well bore while

allowing completion of the non-conventional gas shale play in the primary well bore.

The well has now been brought into production and is producing at an average rate of roughly 20 barrels of oil per day.

"Tomahawk has a 50% working interest (37.5% NRI) in this well which at these production rates and at current oil prices would generate annual revenue of approximately $200,000 and have a payback of less than a year," the company said.

"The 9-13 well also has other hydrocarbon-bearing zones that may be brought into production in the future."

Meanwhile, electric logs from Snell Heirs 1-17, the second well in Tomahawk’s 2005 drilling program, have confirmed ‘substantial hydrocarbons’ in multiple formations in both the primary and secondary ‘conventional’ targets, the company said.

“The well has discovered both oil and gas over the 11 intervals that include the primary ‘non-conventional’ objectives as well as the secondary targets,” Tomahawk said.

“The company is planning to test all of these zones which have a combined hydrocarbon thickness of 346 feet. With abundant nearby infrastructure Tomahawk is confident of having production from this

discovery within months which will enhance an already growing production profile.”

The logs indicated 156 feet of gross hydrocarbons over nine intervals in the secondary

‘unconventional’ objectives which include both gas and oil.

The two primary objectives, the Caney Shale and the Woodford Shale, intersected gross thicknesses of 146 feet and 44 feet respectively with excellent gas shows of more than 2,400 units, some of the highest results of any of the 10 wells drilled to date.

At this stage it appears that this well and the Snell Heirs 4-18, the other well drilled this year, are two of the best wells drilled to date in the project area, according to Tomahawk.

In line with its strategy of bringing on production as quickly as possible, the company is now considering drilling offset wells into the ‘conventional’ reservoirs of the two wells drilled this year. This would allow immediate production from the conventional formations and development in the original well bore for the deeper ‘non conventional’ reservoirs which could require fraccing.

This strategy was used on the three wells Tomahawk drilled in December, which are all producing revenue now.