Vaquero-2 will offset Bell-4 well, drilled by a competitor less than half a kilometre to the north.

Meanwhile Vaquero-1, in the process of completion, will be perforated and flow-tested, and put on production shortly. Completion is being undertaken in some of the deeper geopressured horizons evident on initial logs, the operator Dune Energy reported.

Vaquero-1 encountered significant stacked zones totaling more than 100 feet of gross pay at various depth intervals between 9,000 and 14,000 feet in the Middle Wilcox formation.

FAR is paying 9% of the drilling and completion cost of the Vaquero-2 well to earn a 9% working interest.

FAR executive Michael Evans said the deep Wilcox objectives being targeted in the Vaquero-2 well were capable of robust gas production.

“This is the style of project that we have been specifically targeting in our business model and lies close to infrastructure in one of the best energy markets for natural gas,” Evans said.

“Subject to the successful testing of the Vaquero-1 well, we hope to be selling gas at Welder Ranch very soon.”