The junior drilled the onshore well late last year and hopes flow testing will determine the production capacity of the well. 

In a statement today, ADX said the production equipment to carry out testing was being run into the well together with perforation equipment. 

Gas flows will be instigated by underbalanced perforation which is designed to maximise inflow and clean up. 

When the well was drilled in November it encountered gas across three zones. From this the company was able to determine a 2C contingent resource of 20 billion cubic feet. 

Flow testing will concentrate on one of the three sands, known as PA IV, which is Pliocene age and a proven reservoir elsewhere. Gas samples will determine the commerciality of the deposit, however based on mudlog data the gas is considered dry and can be produced and piped to market with minimal processing. 

ADX will also conduct a 2D and 3D seismic programs later in the year to "further quantify" the potential of the reservoir. 

Engineering studies are ongoing to design production of the gas discovery. There are two development options so far, one of which will include deliver of sales gas to the grid at the nearby Satchinez-Calacea Gas Plant. 

ADX has a 49.2% stake in the Parta license alongside Reabold (50.8%) through a shareholding in the JV subsidiary Danube Petroleum.

ADX shares were worth 0.8 cents per share. The company has a market cap of $13.7 million.