The Utah well, which spudded in late May 2006, was targeting 3 trillion cubic feet of gas in the Golden Eagle structure within Pennsylvanian and Mississippian reservoirs.

Drilling was held up last June due to a rig breakdown, after which Golden State experienced problems trying to recover a lost section of drill pipe from the hole.

Yesterday, the company said that gas has flowed to surface following an initial perforation of the Barker Creek interval between a depth of 12,561 and 12,499ft.

As a result, the well was shut-in while the company waited for a detector array and carbon dioxide to be mobilised to the wellsite.

Testing of the Barker Creek interval will proceed until the end of the week, at which time the company will decide whether to continue testing with this rig or use a specialised workover rig.

Testing on an interval in the Pinkerton Trail Formation indicated the targeted gas show had depleted, Golden State said.

“Given the amount of gas released to the well during drilling and the open fracture system indicated by downhole geophysics, the ‘Pinkerton’ interval appears better evaluated as a Cane Creek play,” it said.

“In oil and gas fields 20 miles to the southwest of the Golden Eagle Prospect in the Paradox Basin, horizontal drilling dramatically increases the probability of encountering economic oil and gas production. This play at Golden Eagle can be tested in Golden State’s subsequent wells on the prospect.”

Golden State is operator and holds an initial 100% interest in this well, however Denver-based Eclipse Exploration has the right to back in with a 16.67% working interest after two wells have been drilled.