This success at South Belridge-5-7 follows a September 9 announcement that Orchard had hit large oil and gas reserves at South Belridge-4-7, the first of a six well drilling program.

SB-5-7 was logged and completed with a 5-1/2” casing at a total depth of 1535 metres, after meeting strong oil and gas shows across the Diatomite formation, as well as gas in the shallow Etchegoin section.

Spudded on September 7, this well and the SB-4-7 were completed as part of an expanded six well drilling program to develop the Diatomite formation.

Orchard has prepared a hydraulic fracturing program for both wells, which aims to open up identified intervals over 762-metres of hydrocarbon bearing Diatomite formation. The company says both wells will be fracture stimulated together by Halliburton on September 22 to improve efficiency in managing fixed costs and to start production sooner.

The third well in the current program, SB-6-7, was spudded on Monday and has a planned total depth of 1524 metres.

Orchard said the final well will be designed to test the shallow gas sections encountered in each of the previous wells. Depending on results, a separate gas development program would be examined alongside the ongoing Diatomite development program.

The company said the program was running on schedule and within budget and expected production could start by next month.

The new six-well program will double the number of wells drilled and completed at South Belridge, said Orchard.

Orchard has also contracted a drilling rig for a further 10 wells at South Belridge to start in early 2006. This new drilling program will focus on the continued development of the Diatomite and Olig Potter discoveries to date, said the company.

Joint venture partners in South Belridge are Maxim TEP (75%) and Orchard (operator and 25%).