The company today said the Thoroughbred-1 well, presently at 1450.8m below the rotary table, in Colorado County, Texas has discovered gas.

It said the well has been completed with a 2 7/8-inch casing string, which has been run and cemented with 1690 sacks cement.

The shallower of the two zones, between 1288.6m and 1289.5m, produced 20 cubic feet of gas into a sample chamber on wireline testing from a test depth of 1288.9m.

The deeper zone, between 1298m and 1304.4m, produced 30 cubic feet of gas into a sample chamber from a test depth of 1300.5m in a six-minute period.

Managing director Laurence Roe described the gas discovery as “very encouraging”.

“These two zones of gas observed at Thoroughbred-1 are interpreted to have encountered a gross hydrocarbon column on the high side of our expectations and validate our exploration strategy,” he said.

“Initial indications suggest Thoroughbred-1 has the potential to host a significant quantity of gas, and we will be working closely with the operator to determine the best approach to commercialising it.

“Hopefully this discovery will lead to early cash flow generation, which in turn will assist Target in funding the acquisition of new oil and gas exploration projects in the United States and elsewhere.”

The third well in the program, Snapper A-1, was spudded on March 14 in St Martin Parish, Louisiana.

Interests in the Thoroughbred prospect are operator Everest Resource (50.75%), Target (25%), Day Star Drilling & Development (12.75%), Anderson Oil (10%) and A & H Investments (1.50%).