As the first well in a multi-well program, LN 2-12 is expected to take 12 to 14 days to reach a total bottom hole vertical depth of 2316 metres, the company said this morning.

LN 2-12 is being drilled directionally to use the existing drill site and infrastructure at Larner 1-12, a gas-producing well discovered in September last year, according to Livingstone.

The exploration target is the Forbes Formation, which is a prolific gas producing formation in the region, said the company.

Livingstone acquired a 50% interest in Larner 1-12 and the associated infrastructure, including a gas processing unit and pipeline.

"This immediate access to infrastructure should expedite commercial production in the event of drilling success," said executive director Craig Burton.

"The Forbes project team has identified at least 100 prospects within its existing acreage, which gives it substantial follow-on drilling possibilities."

Burton said the number of wells drilled depended on weather and logistical access to drilling sites, but added that the joint venture aimed to drill up to three wells as part of the program.

Livingstone has 25 leases covering 14817 acres in the Sacramento Basin.

Participants in Larner North 2-12 are: Orchard Petroleum (operator and 50%) and Livingstone (50%).