In March, Drillsearch, through its 48 per cent owned Canadian subsidiary, Circumpacific Energy Corporation, reported that its TLM Rax 16-8-52-22 well encountered gas in a number of zones in the Cardium Formation.

Drillsearch told the exchange that the Cardium Formation has been fracture stimulated and an absolute open flow (AOF) production test resulted in commercial gas flow rates and significant volumes of associated condensate.

Operations to tie-in this well are anticipated to start by the end of May and the well is expected to be on production before the end of June, the company said.

Drillsearch said the successful completion of the well had indicated the potential for two or three more development drilling sites in the Cardium Formation on the Lambert property.

Forward operations at Lambert are anticipated to involve completion of the Cardium gas discovered in the 5-4 well where gas was discovered in a number of zones in late 2000.

Circumpacific Energy earns a 9.8% interest in the 16-8 well and associated infrastructure. The other partner in the well is Talisman Energy, Canada's largest gas exploration company.