Analysis of the fracture stimulation job at the Ellis-3 well in Ellis County, Oklahoma showed a water reservoir had been intersected, the Perth-based company said yesterday.

Fraccing was conducted on the upper "C" zone following indications from wireline logs, said Antares, which is the operator and has a 92% working interest in the well.

The intercept of water could have had implications for other parts of the well.

But the company said the frac in the “C” zone had not affected the gas-bearing sections of the primary target “B” zone.

Testing and analysis of the well continues as it is flowing with both gas and water.

At Ellis-4, spudded on June 18, the current depth is about 7000 feet, and Antares is drilling ahead towards a target depth of about 11,500ft. Antares is the operator with a 47% interest.

Elsewhere in Oklahoma, Yukon-2 in Beaver County has reached total depth of 5,250 feet after being spudded four weeks ago.

Antares is the operator at the well with an 87.5% interest, while driller Mueller Exploration, of Corpus Christi, Texas, holds the balance.

Wireline logs run at Yukon-2 indicate two highly probable gas-bearing zones, Antares said.

Current operations are in preparation to run casing after completing a short section from vertical to horizontal.

A strong gas show was recorded when the primary zone was re-penetrated, the company said.