According to Emerald, operations at the well included removal of the back pressure valve on the well and installation of the well-head and pressure gauges.

Minor flood damage to the roadway and pad was also noticed, and will require minor repairs for heavy vehicle access.

A pit test was carried out on the well and resulted in the well flowing gas for about six minutes before slugging mud and gas, and ceasing after about 30 minutes, Emerald said.

After an overnight shut-in with no significant flows, the well was shut-in and the crew demobilised, the company added.

According to Emerald, these results are encouraging with gas flowing either from the Laurel gas sands or from the Nullara reef section.

"The noted presence of gas and well-head pressure will assist in the evaluation of the best method to undertake a definite test of the reservoir," the company said.

Participants in the Stokes Bay-1 well are Arc Energy, Empire Oil and Gas, Emerald Oil and Gas, Pancontinental Oil and Gas, Phoenix Resources, First Australian Resources and Indigo Oil.