Petsec Energy Limited (ASX:PSA)
says it has commenced production at its 25 per cent owned Mystic Bayou Discovery Well in the US state of Louisiana.
The well is producing at a rate of 5 million cubic feet of gas per day and shows no water.
Once production has stabilised rates will be increased to optimise well performance and recovery.
Petsec reported a net loss of $4.8 million for the 2015 financial year.