The discovery well was taken offline after the production casing collapsed, preventing access to the MT35 and MT34 producing sands.

Now that the well is back online at the initial flow rate, the Perth-based company said all of its Padre Island wells are producing a total of 14.7 million cubic feet of gas per day, of which it is entitled to 4.6MMcf.

At current US oil and gas prices, Golden Gate expects to receive $730,000 in monthly revenue from these wells.

Meanwhile, Golden Gate said testing was continuing on the second well in the program, La Playa-2, with disappointing results achieved to date.

“The company has been advised by the operator that the two lower zones have been tested with no flow of commercial hydrocarbons,” Golden Gate said.

“Testing continues on several additional prospective reservoirs and results will be advised … once all tests are complete.”