The company said the target sandstone, Waarre Formation, was reached at about 1526m, recording elevated background gas with three gas peaks of up to 195 gas units at 1566m.

No oil shows have been recorded.

The economic basement Eumerala Formation was positively identified in cuttings at about 1588m.

The gross sand interval from 1547-1572m is of interest and would be evaluated after analysis of the wireline logs and pressures, Essential said.

Overall the formation tops appear to be about 10m low to prediction, however all depth sand intervals would be checked and adjusted as wireline log data become available, the company added.

Ayrford-1 in PEP 168 will be followed by the East Wing-1 well. Ayrford and East Wing prospects have the potential to discover between 10 and 20 billion cubic feet of recoverable gas resource, the company said.

Essential is targeting the onshore extension of the highly productive Pecten High trend, which has offshore discoveries containing more than 400Bcf of recoverable gas in the Waarre Formation at the Casino, Henry and Halladale gas fields.

Essential owns 100% of the PEP 168 permit.