The Vaquero-1 was completed in the 9,300 foot sand and the pay zone was determined to be productive with relatively low permeability, the Western Australian company said today.

Texas’ Dune Energy operates the well, which will be connected to a gas line before the end of the week following fracture stimulation and testing.

Vaquero-1 produced natural gas at a rate of 1.5 million cubic feet per day and 34 barrels per day of condensate on an 18/64" choke, with flowing tubing pressure of 1,000 psi, FAR said.

Dune said Vaquero-2 was perforated in the 12,000-foot horizon and during testing it produced 2.4m cubic feet per day of gas and 36 barrels per day of condensate on a 10/64" choke, with flowing tubing pressure of 4,050psi.

Vaqueros-2 is currently shut in while a pipeline is connected, but fraccing could dramatically increase the current flow rate for gas sales expected to start by next week, the operator said.

FAR executive chairman Michael Evans said both wells would be in production this month, providing a quick turnaround from completion to sales.

“We have also set up future drilling objectives and confirmed the highly prospective nature of the Welder Ranch Project,” he said.

Dune has identified at least two additional offset/twin proved undeveloped locations that will be drilled by the end of the year depending rig availability, FAR said.

FAR has a 9.69% interest in Vaquero-1 and 9% in Vaquero-2.