The new exploration program – in the region between New Orleans and Lafayette – will include drilling six to nine wells this year, targeting some 20 billion cubic feet (Bcf) of gas net to Petsec.

The Sydney-based company yesterday said the Bowie Lumber Associates-1 well, the first in the project, has spudded and is being drilled to a proposed total vertical depth of 3658m.

Prior to Petsec’s acquisition of interest in the Moonshine Project, less than half of the block had been surveyed with 2D seismic and no previous 3D seismic had been acquired.

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

The prospects to be drilled in 2007 are less than 12,000 feet (3657.6m) in depth, and have target sizes between 5Bcf and 15Bcf of gas, it said.

The wells are expected to take about three weeks to drill, with production anticipated within four to five months of discovery.

Moonshine is the Petsec’s first significant onshore US exploration program. The company is operator and holds a 50% working interest (36-37.5% net) in the Moonshine joint venture area.

Meanwhile, the company said the Eugene Island 301-1 well on its Eugene Island lease, has reached total depth and intersected 10ft of net gas pay, which was “insufficient” to support an economic development in the location.

The well, 200km southwest of New Orleans, will be plugged and abandoned and the rig released.