Company managing director John Bay told PetroleumNews.net that the well had reached a depth of 397m and encountered the targeted Eocene-aged Omotumotu Sandstone formation during the weekend.
About 8.5m of the primary Omotumotu A sands were encountered at a depth of 258m and the background gas reading in the drilling fluid increased from 0.5% to 5.0%.
The secondary Omotumotu B sands were encountered at 341m but no significant increase in background gas levels was encountered while drilling through these sands.
"While these are very preliminary results, we are encouraged by the elevated gas shows, the significance of which will be determined by electric logging overnight," Bay said.
The company will then decide whether to drill deeper.
Fireball Creek-1 is testing a shallow gas structure that blew out in the nearby SFL-1 well drilled by Superior Oil in 1942. The targeted Omotumotu sandstone structure has the potential to contain up to 40 billion cubic feet of gas.
L&M farmed into the block last November, taking over operatorship and earning a 32.5% stake by funding 65% of the cost of drilling Fireball Creek-1.