Petroquest has made a discovery at its Thunder Bayou prospect in Louisiana.
The company said it logged 490 gross feet of high quality pay within the primary Cris R2 objective.
Petroquest has a 50% working interest and 37% net revenue interest in the well.
Chairman Charles T Goodson said: “We are extremely excited about our Thunder Bayou discovery and the transformative impact it will have on our production, reserves and cash flow profiles.
“This discovery highlights the talents of our Gulf Coast team, which has achieved an impressive 70% success rate in this complex basin over the last 10 years, and further supports our multi basin approach.
“Early expectations are that Thunder Bayou is a project similar in scale to La Cantera, where gross total project finding and development costs are expected to be less than $1.00 per Mcfe and each of the three wells drilled have paid out in less than one year.”
Casing has been set to 20.350 feet to protect the logged interval and the company is currently drilling to a total depth of 21,500 feet to test the Cris R3 objective.
Additional pay sands have also been encountered in the upper and mid Cris R sands.
The company expects to commence production from its Thunder Bayou discovery well in the second quarter of 2015 at a gross daily rate of between 25,000 and 30,000 Mcf of gas.