The program aims to bring into commercial production the many shallow conventional oil and gas formations in its gas shale wells.

Tomahawk said work on the first 12 wells in the program had started and production was already beginning to increase in several wells.

The program, which is expected to cost Tomahawk $1 million net, includes the installation of surface equipment to handle the anticipated increase in oil and gas production.

The company noted the third well of the Bad Creek exploration program appeared to be a successful development well on the Patriot structure that will shortly begin production.

The Patriot-2-15 well, which was drilled as an offset of the successful Patriot-1-15 well, had intersected three prospective formations though only one, the Booch Sandstone, has been perforated with strong oil and gas shows encountered.

At the Booch zone, fracture stimulation and the installation of pumps has been scheduled to allow production to start by July 1.

Tomahawk said another four wells would be drilled in coming weeks while a large number of targets identified by the recent 3D seismic survey would be drilled over the medium term.

The company has brought the Shary-1 discovery well in Hidalgo County, Texas, on stream with 434,000 cubic feet of gas produced during the first 24 hours.

In Hidalgo County Tomahawk is also drilling the Alex-1 well which was sidetracked after the pipe became stuck.

It has spudded the Gayle-1 exploration well on the Hidden Lake prospect which will be drilled to a total depth of 11,400 feet to test multiple Frio sand formations.

It may deepen the well to test other zones.