Wellington Maricopa-6 flowed 35 barrels of oil and 120,000 cubic feet of gas per day from an interval in the Contact Sand objective from 3370 feet to 3550ft that may potentially have net pay of over 130ft.

Sunset said the oil production results are slightly above the company's expectations while the strong gas flows are unexpected and significantly enhance the economics of the well.

"The successful production testing of the Wellington Maricopa-6 well is an important milestone for Solimar Energy.

"This is the first oil discovery by the company and second gas discovery, along with the Jack Hamar 3-13 well at Southeast Lost Hills," Solimar chairman Frank Petruzzelli said.

"Our objective is to commercialise these discoveries as soon as possible to capitalise on the high oil and gas prices, which are over US$10 per thousand cubic feet in California.

"Sales of the liquids and gas from these projects will bring in cash flows to support Solimar Energy's growing exploration and development program in California."

The two companies are planning to drill a follow-up well at the Wellington Maricopa-7 once a rig can be contracted.

Three other vertical well locations and possibly two horizontal locations have also been identified for follow-up in the Maricopa project.

Sunset, which listed on the Australian Securities Exchange in November, is farming-in to earn a 50% interest in Solimar's Maricopa and Deer Creek prospects.

The Deer Creek Prospect is in the southeastern San Joaquin Basin, while the Maricopa prospect is within the Midway-Sunset oil field - one of the largest producers in California with 11,000 wells and 2.8 billion barrels of production to date.