To be drilled to a total depth of 280 metres, Zuspan-1 will test coal thickness, gas content and gas composition from the Freeport and possibly the Kittaning coals.

Molopo, which has a 50% interest in the project, said gas flows were recorded in the 1920s from these coals in two wells drilled within 1.6 kilometres of Zuspan-1.

The project contains multiple oil and gas targets in sandstones, shales and coals, with gas in the leases currently being produced from the Ohio Shale zone, said Molopo. The joint venture expects the target reservoir contains potential CBM reserves of over of 50 billion cubic feet.

Covering 8000 acres (3237 hectares), Mason County is Molopo’s first US project, adding to its CBM producing and exploration interests in Queensland’s Bowen Basin and the Gloucester Basin north of Newcastle in New South Wales.

Molopo entered the project through US partner Foree International, which farmed into an agreement with leaseholder Base Petroleum. Base Petroleum currently owns 100% of 37 existing wells producing gas from shales in the joint venture’s leased area.

This arrangement leaves large targets in the fractured Ohio Shale open to Molopo and Foree, as well as allowing appraisal and development drilling of the Berea, Oriskany and Newburg Sandstones, and the CBM prospectivity of the Freeport and Kittaning coal seams. The joint venture also expects to acquire additional acreage in the vicinity, said Molopo.

The company said a gas gathering and pipeline system serving the Mason County area would allow new discoveries to be quickly tied-in, said Molopo.