Mosman Oil and Gas Ltd (AIM:MSMN) has announced that the Barclay-TH 295 106A well, at the Billy Goat project, has flowed gas to surface from secondary targets.
At Billy Goat, drilling begun this week and it so far reached 583 feet, and flowed gas from the Entrada formation at two zones (around 240 feet and 483 feet).
Flow rates at the deeper zone was calculated at 63,000 cubic feet per day and gas samples have been sent for analysis.
Casing will now be set ahead of drilling to the primary target, the Lyons formation, which is expected at about 800 feet.
Andy Carroll, Mosman chief executive, described the Entrada gas flows as “a positive indication”.
"The primary target is the underlying Lyons formation helium reservoir which is sealed by the Blaine anhydrite which will be drilled once casing has been set,” Carroll said in the statement.
“It is anticipated that drilling of this well will be completed in the next few days."
Mosman earlier this week struck a deal with its partner to up its stake in Billy Goat to 90% from 20%.