The Sydney-based company yesterday said the new onshore exploration program – in the region between New Orleans and Lafayette – would include drilling six-to-nine targets in 2007. It is scheduled to begin in the second half of February.

Executive chairman Terry Fern said two rigs have been secured for the Moonshine drilling.

“The 2007 Moonshine drilling is targeting in excess of 20 billion cubic feet of gas equivalent (Bcfe) net to Petsec Energy, and is part of an overall expanded 2007 exploration program by the company in the USA and China,” Fern said.

He said Petsec was looking to drill between 14 and 20 wells in 2007 across its US onshore and offshore leases, and offshore south coast of China in the shallow waters of the Beibu Gulf. This compares with a total of 10 wells drilled in 2006, of which nine were successful.

“The expanded 2007 program, if successful, has the potential to more than double the company’s current oil and gas reserves,” Fern said.

The Moonshine project covers a large, 94 square mile (243.5 square kilometres), highly prospective area about 80km west of New Orleans on the west bank of the Mississippi River.

Prior to Petsec’s acquisition of its interests in the Moonshine Project, only a portion of the block had been surveyed with 2D seismic and no previous 3D seismic had been shot, it said.

Petsec completed a 3D seismic survey over Moonshine in August 2005 and during 2006 mapped a significant number of gas and oil prospects, expected to be tested over the next two to three years.

The prospects to be drilled this year are less than 12,000 feet (3657.6m) in depth, and have target sizes between 5Bcfe and 15Bcfe of gas.

In the deeper geologic section (greater than 12,000ft in depth), a significant number of prospects have been mapped with targets in excess of 20Bcfe of gas. It is anticipated that a number of these prospects will be drilled in 2008, Fern said.

Operator Petsec holds a 50% working interest (36-37.5% net) in the Moonshine joint venture area.