The test, which was carried out over an interval between 2196-2256m, also flowed about 82 barrels of condensate per day.

InterOil said a full reservoir evaluation will be performed after the well in the PPL 238 permit, Eastern Papuan Basinreaches a total depth of 2450m.

It added that once total planned depth is reached the well can be fully assessed with third-party evaluation of multiple DST results.

The Elk-4 well is targeting the Puri, Mendi and Antelope Reef limestone and could confirm both the Elk and Antelope structures form a continuous gas field.

The gas from this structure is intended for Liquid Niugini Gas' proposed liquefied natural gas project in PNG.

Liquid Niugini, which is an equal joint venture between InterOil, Merrill Lynch and Clarion Finance, is planning to build a two-train LNG plant capable of producing up to 9 million tonnes of LNG per annum from 2012.

This week, Liquid Niugini Gas CEO Dr Jack Hamilton told PNGIndustryNews.net the PNG Government may be awaiting the full results of Elk-4 as negotiations over a gas agreement continue over the next few weeks.