Orchard Petroleum's Larner 1-12 exploration well in the Sacramento Basin, California has registered hydrocarbons in shallower secondary objectives before encountering gas in the primary objective.
Drilling in the United States
The well will now be completed before a testing program is run, while the second well in the Forbes Gas Project is planned to commence in the next fortnight.
"We are very pleased to be setting pipe on our first well in the Forbes Gas Project. This is our third project in California including Sledge Hamar and McCormack Road where we have had success over the last year," said executive chairman Steve Graves.
"It holds significant importance given our planned multi-well drilling program in the Forbes Gas area and large working interest in the project."
Gas prices in California are currently around US$6.50, almost three times higher than the average of around US$2.50 for Australian gas prices.