A rig contracted for six weeks would drill up to three gas wells, with Larner North 2-12 to be sited near Orchard’s first discovery last year in the 15,000-acre (6070 hectares) lease. Meanwhile, the Wallace 2-13 is expected to be drilled about three kilometres from the Larner well.

Both wells are targeting the Forbes Formation, which is a prolific gas producing structure, said Orchard.

The company says a third prospect will be readied for drilling, subject to the time taken to complete the first two wells.

Orchard expects drilling to start in mid October, depending on final rig availability.

Orchard's partner in the block is new petroleum explorer Livingstone Petroleum, which listed on the Australian Stock Exchange last week at a premium after raising $3 million in its initial public offering.

With the funds raised from its IPO, Livingstone can participate in five wells. The company said it would use a combination of future capital raisings and cashflow to fund future exploration.

Joint venture partners are: Orchard Petroleum (operator 50%) and Livingstone Petroleum (50%).