Transerv said sustained gas flow and a continuous gas flare have been achieved from the Warro-6 well in Western Australia during the initial clean-up phase of the well.
The company said the flow rate has yet to be measured but the early stage result is considered to be a significant development in its strategy to establish Warro as a major economic gas project.
Warro is Australia’s largest undeveloped gas field with resources of 11.6trillion cubic feet of gas in place.
The programme at Warro is being funded by Alcoa of Australia, which can earn up to 65% of the project.
The gas flow follows the successful reservoir stimulation programme completed at Warro-6 last week.
Reservoir stimulation at the Warro-5 well, which was drilled with Warro-6 as part of the current two-well program, had been suspended when proppant from the initial stimulation phase back filled into the borehole.
Transerv managing director Stephen Keenihan said: “These two wells have already doubled the Warro Contingent Resource , and the early flow of gas at Warro-6 provides further evidence that this major gas resource could be an attractive economic undertaking.”