The company said its geological and geophysical consultant had estimated the field - located at a depth of about 2438m - still has remaining proved, probable and possible reserves of about 45 billion cubic feet of gas.

Entek added that it plans to drill a second well to accelerate production from El Capitan and tap a second proven but undeveloped reservoir which has estimated recoverable reserves of 6.9Bcf.

Initial cost of the first planned well has been assessed at $US6 million (Entek's share is $US4.5 million) with Entek saying its current revenue of more than $A550,000 per month should provide sufficient working capital to meet this obligation.

The company also said it is in the process of appointing an international petroleum reservoir evaluation firm to assess the block and independently certify its reserves.

The company has a 75% working interest in Main Pass Block 252 block, which it secured during the Central Gulf of Mexico Planning Area Sale 206 in March.

The United States Minerals Management Service subsequently gave notice that it had accepted Entek's bid for the block.

Meanwhile, Entek said crude oil production from the Beach-operated ATP-269P in Queensland was 2384 barrels for March 2008.

The company said it expected production to reach 3500 barrels per month, of which its share would be about 980bbl, once the Coolum-1, Byrock-2 and Marcoola-1 wells reached their full capacity.

Entek has a 28.15% stake in ATP-269P.