Hilcorp Energy Co. has flowed gas from an appraisal well located along the Texas Gulf Coast in Matagorda County, according to a Feb. 24 news release from joint venture (JV) partner Otto Energy Ltd.

The well, Green #2, is the second appraisal well drilled on the Lightning prospect. A previous well, Green #1, in early 2019 confirmed 180 ft of net pay of gas and condensate, which was significantly in excess of per drill expectations for the Lightning Field.

In its release, Australia-based Otto Energy said the Green #2 well has been successfully completed in the Tex Miss 1 interval and that the well is producing 12.4 million standard cubic feet per day of gas and over 350 barrels per day of condensate.

Following the results from the Green #2 well, Otto Energy CEO Matthew Allen now believes there is potential to significantly improve the “already large gas and condensate accumulation” in the Lightning Field.

“With two wells producing from the field, there is confidence in the large size of the Tex Miss 1 reservoir interval,” Allen said in a statement. “The task ahead of the joint venture is to now unlock the potential of the even larger Tex Miss 2/3 interval.”

The JV partners are planning to design a future well to test the ability to stimulate the Tex Miss 2/3 zone.

It had been planned to evaluate the Tex Miss 2/3 zone with the inclusion of a fracture stimulation in the Green #2 well. However, bottomhole conditions following the need to sidetrack the well did not prove suitable for such an operation, according to the company release.

Houston-based Hilcorp is the operator of the Lightning JV project. Otto’s working interest is 37.5%.