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Sunday, 20 July, 2008, 22:50 GMT | more prices >>

Schwing runs sweet for First Australian

By Upstream staff

First Australian Resources said its operator had struck about 11 feet of gas pay in the Upper Marg Tex interval in the Schwing-2 well on the South Gross Tete prospect in Iberville Parish, Louisiana.

First Australian said the gas was confirmed by logs, which also indicated a possible further five feet of pay in the lower Marg Tex interval.

The Marg Tex interval is a secondary target for the well. The company said it would run casing to the Bolmex interval before continuing to drill to test a primary objective at 14,500 feet.

First Australian said in a statement today the well would no longer be used to test the Willcox formation. The company has a 5% working interest to 14,500 feet and a 17.7% interest below that level.

It said it would retain its interest in the deeper levels and determine its level of participation if further test drilling was proposed.

The well is operated by Spartan Operating Company. First Australian has a 25% stake in the South Gross Tete Project, in which fellow Australian player Amadeus Energy also holds an interest.