The well will be a dual test of coal seam gas in the Permian coal measures and shale oil/gas in the toolebuc shale.
The Pontus-1 exploration well encountered approximately 97 feet (30 metres) of net gas pay.
The data from this well forms part of the Galilee Joint Venture's assessment of the extent of maturity of the Toolebuc shale as an oil and gas resource.
Drilling is expected to commence in coming weeks, with each well projected to be drilled and cased in under 60 days.
Liquids rich gas flow has been measured and flared at a peak rate of 178,000 cubic feet per day.
The Kruger1 well, the second well in Ambassador's first ever drilling campaign, has a mean recoverable oil potential of 380,000 barrels from the Basal Birkhead/Hutton formations.
The Arrowsmith-2 frac campaign is a major undertaking, and as in any project planning and preparation is essential.
The Mustang-1 well encountered a gross oil column of 4.5 metres, with 4 metres of net pay, in the Birkhead Sandstone section of the well.
This approval satisfies the last condition precedent of the Farm-In Agreement announced on June 20, 2012.
The first phase was a single stage fracture stimulation of the top section of the Patchawarra Formation, which delivered a flow rate of up to 750,000 scfd, with decline rates in line with those from the Holdfast-1 well.