The Perth-based junior said Dunn Deep-2 flowed at a daily rate of 3 million cubic feet of gas, 60 barrels of condensate and no barrels of water on an initial production test, after which it was connected to the sales line at a rate of 3.8 million cubic feet per day.

The original discovery well, Dunn Deep-1 – formerly called La Playa Deep-1 – has been producing from the MT35 reservoir at more than 4.5MMcfd over the past 20 months from 8 feet of sand in the reservoir objective.

Golden Gate said the follow-up Dunn Deep-2 well intercepted 20 feet of sand within the same MT35 reservoir.

“The Dunn Deep reserves are difficult to estimate due to variations in net-gross reservoir across the trap area,” it said.

“This well [Dunn Deep-2] will assist in reserve estimation and delineating the field, as well as having the potential to accelerate production and cash flow.”

This result has increased Golden Gate’s share of gas production from Padre Island to 4.3MMcfd, while it is also receiving $US80 a barrel for the associated condensate output.