Tests last week on a new well in the Corrib gas field confirmed that it had the potential to produce gas commercially, the exploration company developing the field said yesterday.

Enterprise Oil, in joint venture with Statoil and Marathon Petroleum, said a test on a northern element of the field established flow rates of up to 60 million standard cubic feet of gas per day.

A further well is to be drilled this summer, although the consortium is not expected to proceed with the full-scale commercial development of the field until late this year. Enterprise also revealed that Mr Brian O Cathain had been appointed as managing director at its Dublin subsidiary, Enterprise Energy Ireland. Mr O Cathain succeeds Mr John McGoldrick, who is leaving the Irish project to manage the company's US interests.

Enterprise's chief executive, Mr Pierre Jungels, said in a statement that the company anticipated seeking project sanction in December, "where there will be a clearer picture of the engineering and commercial aspects of the project".

Crucial to this will be how the company's gas will be linked to the Bord Gais network.

The gas will be brought ashore at Pullathomas, Broadhaven, Co Mayo, and Enterprise is considering two options. The first is to link with a proposed Bord Gais loop line from Dublin to Galway. The alternative is to link with its network in Dublin.

Welcoming yesterday's test result, the Minister of State at the Department of Public Enterprise, Mr Joe Jacob, said his aim was to have a "range of supply options" in the market.