Drilling began on MSC-07 last Friday. As at 10am (AEST) today the well was at 237 metres and drilling ahead.

At MSC-03,increased gas flow was recorded from after the well was shut down to assess water from the coal seams, Metgasco said. Elsewhere in the Walloon coal measures, high gas flows have been associated with high water flows as gas and water are stored together in coal seams.

MSC-04 is now in the process of draw down as the pump is being commissioned.

MSC-05 had gas flows increased from last week and the wellhead pressure decreased in line with the rise.

At MSC-O6, slotted liner casing has been installed in and the wellhead is being assembled.

The company estimates PEL 16 could contain up to 1000 petajoules of coalbed methane in the Walloon coal measures.

These have proven to be prolific gas producers in Queensland and PEL 16 is also prospective for conventional gas accumulations, Metgasco said.