Gulf Stream Energy Limited (ASX: GSE) announced on 15 October 2026 two oil discoveries at its Zydeco Oil & Gas Project in Acadia Parish, Louisiana, USA. The company, focused on building a scalable US Gulf Coast oil and gas business through the acquisition and development of low-risk, near-term production opportunities, reported that wireline logs from the Zydeco-1 sidetrack identified oil in two separate sandstone zones. These discoveries were made in the Homeseeker B at 8,935 feet TVD and the shallower Borsum Sand at 3,364 feet TVD. No flow testing or fluid sampling has been undertaken at this stage.
The Homeseeker B sandstone, a primary objective of the sidetrack, confirmed oil on wireline logs, marking a key result for the well. Additionally, a second, distinct oil zone was identified in the Borsum Sand, a shallow formation whose depth allows for separate evaluation from the deeper zones. The Zydeco-1 sidetrack was completed safely at a total depth of 9,180 feet, with no reported health, safety, and environmental (HSE) issues. The company holds a 100% working interest and operates the project.
Furthermore, heavy-wall 7-inch casing has been set approximately 378 feet above the Upper Tweedle, an undrilled target prospective for high-pressure gas and condensate. This ensures the company retains the ability to drill into and test the Upper Tweedle from the existing wellbore in a future phase. Gulf Stream Energy Managing Director Joseph Graham commented that it was an exciting result, confirming oil in both a primary objective and the shallow Borsum Sand, while commending the team for safely delivering a technically challenging well.
Gulf Stream Energy’s immediate focus will be on evaluating the two oil discoveries to assess their potential for commercial recovery. The company expects to provide further details regarding this evaluation work in an upcoming announcement. Any decision to drill into and test the Upper Tweedle will be considered separately, taking into account the results of the current evaluation.
