The company said it was confident its M9 exploration block had high potential, and it was preparing to drill another exploration well, as well as four or five appraisal wells to confirm its petroleum reserves.

President Maroot Mrigadat said two exploration wells in the Gulf of Martaban - Gawthaka-1 and Kakonna-1 - had been completed successfully and that both had encountered natural gas.

Gawthaka-1, in the north of the M9 block, was spudded on January 13 and drilled to a depth of 3,380 metres. It encountered five natural-gas-bearing formations with a combined net pay zone of 56 metres. Gas-flow tests in two zones found a flow rate of only 15 million standard cubic feet of natural gas per day, because of technical problems with the equipment.

The Kakonna-1 well was spudded on February 7 and reached a depth of 3,391 metres. It encountered eight natural-gas-bearing formations with a combined net pay zone of 77 metres. Tests found a flow rate of 30 million standard cubic feet per day.

PTTEP first struck natural gas in its M9 block early this year, in the Zawtika-1A well - the first of three exploration wells. Test results from the three wells have left the company confident of the production potential in the eastern area of the M9 block.

In the near future, the company will drill a fourth exploration well, plus four or five appraisal wells to confirm the petroleum reserves. It will also begin planning the development of the reserves with the aim of first production in 2011 or 2012, for local use and export to Thailand.

The M9 block is in the Gulf of Martaban about 300 kilometres south of Rangoon. PTTEP holds a production-sharing contract with the Burmese government and has a 100-per-cent interest in the M7 and M9 blocks.