Egdon Resources has revealed a gas pay zone at the Wressle-1 well, onshore England, UK.
The well, located in Lincolnshire licence PEDL 180, confirmed gas production rates of up to 1.7 million cubic feet per day and about 12 barrels of oil per day from the Penistone Flags reservoir.
Egdon said no free water was encountered and the oil is of good quality with a gravity of 35o API.
The company will analyse down-hole pressure data recorded in testing to estimate gas flow rates that could be achieved without flare and permit constraints.
"We are very encouraged by the early test results from the Wressle-oil and gas discovery."
It will undertake an additional test to identify the gas-oil and oil-water contacts in the Penistone by perforating the formation deeper in the section.
Egdon Resources managing director Mark Abbott said:"We are very encouraged by the early test results from the Wressle-oil and gas discovery.
"All three zones tested have produced hydrocarbons to surface, with a restricted flowrate of 1.7 mmcfd from the Penistone Flags, free-flowing rates of up to 182 bopd and 0.46 mmcfd from the Wingfield Flags and 80 bopd from the Ashover Grit.
"We now look forward to the results of our work to identify the location of the expected oil leg in the Penistone and to seeing what oil rates can be achieved with pumping of the Ashover Grit"
Europa Oil & Gas has a 33.3% working interest in the PEDL 180 licence, which covers an area of 100km². Egdon Resources operates it with a 25% stake.
Celtique Energie Petroleum and Union Jack Oil have 33.3% and 8.3% stakes, respectively.