sell over 7 cents very thin, page-20

Excellent news, but its from over over yet. It is obvious the gas flow is on the upper end of their expectations so I'm inclined to think we should see upward of 12c to maybe 18c in the near term. That is, when the news sinks in. EPR is small company after all, and well off the radar

Here's what Petroleum News said in their last news item of the day. No doubt there will be more to come when the full results are in.

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Essential flies with East Wing find
Friday, 12 September 2008

ESSENTIAL Petroleum has flowed 9 million cubic feet of gas during production testing of its East Wing-1ST well in PEP 168 of the Otway Basin, Victoria.

The gas flowed from a 12m interval between 2210.7m and 2222.7m in the Warre formation. Condensate was also recovered during production, although no figures were available on the amount produced.

“We thought initially it was a very dry gas, but as it turned out the condensate was there, it was just lagging,� managing director John Remfry told PetroleumNews.net.

A deeper zone was tested for possible liquid content but was found to be water-bearing with residual hydrocarbons.

Remfry said it was too early to comment on the size of the discovery, although he noted that the full results of the production test would help in determining the estimated result at East Wing.

Chairman John Cornelis said the proximity of the discovery to established infrastructure would enable its rapid development, although Remfrey said work may have to be done to East Wing-1ST to make it suitable for production.

Remfrey said Essential was likely to shoot 3D seismic over East Wing as the next step at the discovery.

However, the company’s focus has now turned to the offshore well it is drilling with Beach Petroleum in the Otway Basin.

Operator Beach has secured the West Triton jack-up drilling rig to drill the Fermat prospect, which has the potential to be twice the size of the nearby Casino gas field.

Beach and Essential each has a 50% stake in VIC/P46.