The company yesterday said 12-hour test results revealed Selmo-36 is producing at an initial rate of 152 barrels of oil per day (bopd) from a total pumped volume of 535 barrels of fluid per day (bfpd).

The oil volume is more than double the 73 bopd (from a total of 304 bfpd) before drilling the USR wells, the Turkish-focused producer said.

Earlier this month the company said a number of drill pipe failures had occurred at Selmo-36 after two USR drill holes placed “substantial stresses on the pipe.”

Incremental suspended the first hole because of the ongoing risk of drill pipe failure, but continued to drill the second with a larger diameter radius to reduce drill pipe stress.

Production is from both USR drain holes, it said.

Managing director Gerry McGann said the company was able to achieve the “encouraging” flow rates despite problems.

“The USR laterals in Selmo-36 were planned to extend about 600 feet laterally from the original vertical wellbore and were planned to intersect some 300 feet of Middle Sinan Dolomite reservoir,” McGann said.

“Due to operational difficulties, departures of only 84 feet and 62 feet from the vertical and a reservoir penetration of only about 34 feet and 3 feet were achieved.

“The substantial increase in production rate from the USR drainholes suggest that our recently developed geological model, with fractures playing a significant role in production, is basically sound.”

Incremental’s six well program involves re-entering existing vertical wells and drilling USR laterals into the MSD upper reservoir to increase production and gather information on lateral reservoir continuity.

The company said it believes the Selmo MSD reservoir is undrained by field production and still contains substantial reserves.

The current USR well being drilled is Selmo 43 and once well 36 is completed, two more wells will remain on the program, Incremental said.

Project costs to date have reached about $2.4 million, which were "well within" original cost estimates, the company said earlier this month.

The total 2006 USR program in Selmo is budgeted around $4 million for six USR wells.

The current program is expected to continue until the end of next month.

Incremental listed on the Australian Stock Exchange last October, after raising $61 million in an initial public offering.

It used the funds to finalise its purchase of a 100% working and revenue interest in the production and exploration licenses for Selmo, along with other exploration areas in Turkey.