On production test, the Ezell 4-H well flowed a daily equivalent of 1.5 million cubic feet of gas and 20 barrels of oil with no water through a 16/64 choke. The well, which was drilled to a total depth of 1249m, also measured a flowing tubing pressure of 1200psi.

At current oil and gas prices, Austin expects the well to generate net revenue, after royalty deductions, of about $US8500 ($A11,430) per day, or $263,500 per month.

The Ezell 4-H well is expected to be connected and selling to the market inside the next week.

Austin, which holds a 35% working interest in the Polecat Creek Prospect, says the joint venture has begun analysis to determine a second potential well site.

Meanwhile, Austin says it has received approval to start drilling its other US asset, the St. Gabriel I and II prospects in Louisiana. A large American drilling company is due to start drilling the St. Gabriel I prospect by the end of the year.

An independent geologist has indicated this prospect has the potential to contain 36 billion cubic feet of gas and 5 million barrels (MMbbl) of oil, according to Austin, which is farming-in to earn an 80% stake.

Back in Australia, Austin said the PEL 73 joint venture was receiving bids from contractors and suppliers for the testing of, what it describes, as “potentially Australia’s largest onshore oil and gas prospect”.

Located in South Australia’s Stansbury Basin, the Yorketown Prospect is expected to be drilled in the first quarter of next year.

If all elements of the play are productive, the structure has been estimated by an independent report as having the potential to contain more than 1 billion barrels of in-place oil, of which 800MMbbl are estimated to be recoverable.

Austin Exploration has a right to earn a 16.667% interest in the Yorketown prospect.