The company also revealed plans to further expand the plant in the next six years with a $60 million project to install a large compressor already on the drawing board. 

The Iona 7 Well was completed before Christmas and involved drilling down 1600 metres during the 10-month-long project.

Lochard Energy chief executive officer Anthony Fowler said the well increased capacity at the site and was now producing 480 terajoules a day.

"This project has been a significant expansion for us," Mr Fowler said.

"It takes us about half the way to where we ultimately look to be which is a facility which produces about 570 terajoules a day."

Mr Fowler said the well project was "very high tech stuff".

"Even though you drill to 1600 metres through all sorts of different rocks and at different angles, the very end of that well actually came to within 60cm of hitting the exact target position it was looking to do," he said.

The expansion project employed more than 50 civil, construction and support service jobs, most of which were filled by south-west workers.

Another 100 people, such as drilling specialists, were involved in the project.

Mr Fowler said the facility provided a reliable supply to gas generators in Victoria and South Australia.

"Those gas generators are particularly important in the market environment of today where we have a lot of fantastic renewables," he said. 

"Those gas generators support those renewables on those days when the wind doesn't blow and the sun doesn't shine."

Minister for Energy, Environment and Climate Change Lily D'Ambrosio said the new facility ensured there was enough gas supply when it was needed the most, especially during the cold winter period.

"Gas will continue to be an important part of our energy mix for many years to come," she said. 

"It's certainly a part of the  evolution and the transition toward clean energy which is we know is well and truly under way."

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