The company and Mitchell Drilling Contractors spudded the PGE-2 well on February 14, and as of 6pm Sunday the hole was at 504m. The current operation is to drill to a total depth of 1100m. The hole will be logged on reaching total depth to ascertain coal thickness and quality.

The Mitchell Drilling rig will then move to drill PGE-3 and PGE-4, which are programmed to be drilled to about 700m and then cased.

PGE-1 has already been drilled but logging results will not be released until all four Gordon wells have been completed.

A second rig will undertake coring operations. Following completion of drilling of PGE-3 and PGE-4 by Mitchell’s Rig 124, the coring rig will then core these to total depth.

Purus plans to take cores of the Killara coal measures so that gas desorption testing and gas analysis can be undertaken. PGE-3 and PGE-4 will also be drill-stem tested to determine the formation’s coal permeability and water levels.

“The use of the second rig will accelerate the drilling program once onsite, as there will be two rigs operating continuously to complete the total program,” Purus said in a statement.

“It is anticipated that the total Gordon project area will take approximately eight to ten weeks to complete, with results expected to be available some two to four weeks after completion of the full drilling program.”

Following completion of drilling at Gordon, the rigs will start drilling and coring at the Hawkesdale project area.

Purus has identified six discreet project areas in the Otway Basin, from its initial analysis of an extensive seismic and well data base. Of these six areas, the Gordon and Hawkesdale projects have been targeted for initial investigation. Drilling has commenced on the Gordon project area.

These two initial project areas will involve about 4000m of drilling at each project.

Four holes will be drilled in each project area, to an average depth of 1000m. All holes in each area will be logged. Additionally, in each project area two holes will have more extensive analysis undertaken, which will include wireline logging, coring, and drill-stem tests for permeability.

Depending on the results of the initial drilling at Gordon and Hawkesdale, a pilot drilling program will be planned for both areas. This would begin following successful full evaluation of the results.

Mitchell Drilling has the right to undertake a $1 million drill-for-equity investment in the company once a decision is made to proceed to the pilot field stage.