The Perth-headquartered junior said the well, which is the third in a five-well drilling program, encountered two gas-bearing formations.

Surface facilities are in place and Texon is planning to construct a pipeline over the next few months to bring the lowermost 17-foot zone online.

Texon, which holds a 100% working interest in the well, said production from the upper 5-ft zone would start once the lower reservoir is depleted.

Drilling has now started on the fourth well in the program, Airlie-1, which has a planned total depth of 1158m and is targeting 500-600 million cubic feet of gas resources.

Since listing in May, the Perth-based junior has drilled three exploration wells – Cabarita-1, Byron-1 and Mermaid-1 – all of which encountered hydrocarbons.

Meanwhile, the company also announced today that it farmed out equity in its Bondi deep gas prospect. Empyrean LLC now has 20% in the prospect, Australian junior Sun Resources has 15% and Texon retains 65%.

In Texon's early 2007 Prospectus, Bondi was referred to as having an estimated gross gas resource potential of 21 to 42Bcf. But Empyrean in a September 14 release to the London Stock Exchange said that Bondi was a target of 30-76Bcf.