Korean energy company Posco Daewoo has announced the results of gas testing in the Mahar field, west of Myanmar.

A test drill in the A-3 block found a gas reserve capable of producing 38 million cubic feet (1.08 million cubic metres) per day.

Testing began on 12 January and reached a depth of 2,598m. The well was made in the Mach Prospectus area of the Bay of Bengal, close to three other fields being worked by the company.

The new well is around 30km south of the existing Sheh gas field and will be developed with it. It is also 24km north-west of the Yan Aung Myin field, where Posco Daewoo expects to carry out further test drilling.

Extraction is expected to begin in 2021. The company will then analyse flow for two years and develop a plan for connecting the two wells, potentially connecting the new site as well.

The block was originally licensed to Posco Daewoo in February 2004. The Shwe and Shwe Phyu gas fields were discovered in the company’s stakes in 2004 and 2005.

The Mya field was discovered in block A-3 in 2006. Combined, the fields are believe to hold over 4.5tn cubic feet (127bn cubic metres).

It then brought in a consortium of Indian companies Gail and ONGC Videsh, which took a 30% stake in the block.

In 2008, Myanmar Oil and Gas also had a stake in the area, along with Korea Gas Corporation.