The flow testing of the first of two zones is intended to further appraise the conventional Waitsia gas discovery and to determine well deliverability from two conventional reservoir zones.

The company will also collect gas samples during testing for compositional analysis.

As part of the testing program, AWE will begin flow test at the first zone, the deeper High Cliff Sandstone, where a 23.5m interval has been perforated.

AWE managing director Bruce Clement said: "This is an excellent result and confirms the production potential of the conventional High Cliff Sandstone in the field.

"We now have two successful well tests at Senecio-3 and Waitsia-1, and we are moving forward confidently with our plans for the first stage of development."

The Waitsia gas field is estimated to host around 290 billion cubic feet of 2C contingent resources in the Kingia / High Cliff Sandstone formations.

During flow testing over 1 hour, the High Cliff Sandstone achieved a flow rate of 24.7 mmscf/d, constrained by tubing size, on a 60/64 inch choke at approximately 1330 psig flowing well head pressure.

AWE plans to close the Waitsia-1 well for a brief pressure build-up survey following which a series of flow tests at various choke settings, rates and well head pressures will be carried out.

Upon completion of testing on the High Cliff Sandstone, the company will commence a similar well test program on a 15m interval in the Kingia Formation.

AWE plans to complete the testing program by the end of November.

AWE, through its subsidiaries, owns a 50% stake in the Permits L1/L2, while Origin Energy Resources holds the remainder.