The well was cased and suspended following the interpretation of more than 24 metres of net gas pay within several Patchawarra Formation sandstone intervals, which Great Artesian Oil and Gas has estimated to contain around 20 billion cubic feet of gas in place.

The cased hole program will involve perforating and testing three intervals in the Patchawarra Formation – 2734m to 2741m, 2783.5m to 2795m and 2796.5m to 2806.3m.

The production testing is intended to provide data on the reservoir fluid content, its detailed composition and specific reservoir properties, including the deliverability of these three interpreted hydrocarbon-bearing intervals.

“If the new tests are okay we will drill a Smegsy-2,” Great Artesian managing director Ray Shaw told EnergyReview.Net

Great Artesian has about 30 prospects and leads in PEL 106 and surrounding areas, he said.

While the company holds a 100% stake in PEL 106 and its other permits, it now has a policy of not drilling any wells with 100% interest.

“Having 100% interest doesn’t win twice the market kudos that 50% does,” Shaw said.

“It’s worth getting farmin partners and dropping down to anywhere between 30 and 75%. You’re no worse off with investors."

Interests in the Smegsy Block Joint Venture are Great Artesian 75% and Enterprise Energy NL 25% with Enterprise’s stake subject to a commercial discovery being made, according to Shaw.

“Great Artesian farms out on a prospect-by-prospect basis on the basis of no discovery, no earn,” he said.

“We don’t want large unwieldy JV groups. Partners can lose interest after a few dry wells and that can make future progress difficult. Doing it this way is flexible for both parties.”