The well was drilled to establish coal thickness and flow test coals between 60-320m depth, operator Bow Energy said.
Once operations at Orallo North-3 have been completed, the JD Rig 15 will be moved to the fourth production hole in the reserves certification program, which is likely to be the Orallo South-2 well, about 2.9km south of Orallo North-1.
Bow added the re-drill of the Orallo South-1 well has reached the casing point at 282m and will core ahead to the target depth of 535m after the casing is set.
The well is designed to determine the Walloon Coal Measures gas contents between 282-535m deep.
Meanwhile, Bow said the workover of its Donga-4 appraisal well in the Surat-Bowen Basin permit ATP 805P, Queensland, is expected to start in the last week of April.
The workover will consist of perforations over the Donga sandstone oil interval and a swab test to determine the potential oil flow rates of the well.
Bow said assuming positive results in the Donga-4 swab test, it will bring the well and Donga-3 into production.
The company is also negotiating to carry out a similar swab test on the Rockwood North-1 well that flowed at 80 barrels of oil per day in early 2005 and now produces an average of 10bpd.
Subject to rig availability, this test is scheduled for May or June this year.