Testing is now expected to begin by the end of August following a delay with the availability of the fracture stimulation and testing equipment required for this next well operation, the three Australian juniors said in a joint statement today.

Texas Crude has also confirmed that the rig to drill the Sugarloaf Joint Venture leases’ next well, Kennedy-1H (previously designated Sugarloaf-2), has been secured and construction of the drill site has begun.

A contract has been signed for the same rig that successfully drilled Sugarloaf-1 and which has adequate capacity to drill this next well.

Kennedy-1H is designed to be drilled as a vertical well to a depth of about 12,000 feet at which point the well will be kicked off to drill a 5000 feet horizontal section into the upper zone of the Cretaceous-aged carbonate reservoir.

On a trouble free basis, Kennedy-1H should be drilled and completed within 45 days, followed by fraccing and testing operations if successful.

The well is expected to spud by mid September, subject to when the rig is released from the well it is drilling.

Sugarloaf-1 partners are Texas Crude Energy (operator with a 41.5% stake), Aurora (20%), Adelphi Energy (20%), Eureka Energy (12.5%) and Empyrean Energy (6%).