A series of open hole flow tests recorded maximum flow rates to surface of 0.59 million standard cubic feet of gas per day without water on a half-inch choke from the uppermost Juandah seam at a depth of 197m, managing director Tony Gilby said..

Sunshine managing director Tony Gilby said the instantaneous gas flow rate suggested the Juandah CSM resource in this location was capable of delivering gas at good rates.

“The instantaneous gas flow rate achieved from the uppermost coal seam in the sequence, suggests that the Juandah coal seam in this location is capable of delivering gas at good rates,” Gilby said.

“Production testing of the well will be required to establish the sustainability of the gas flows observed to date. However, this initial result bodes well for the broader Walloon coal seam gas play in ATP 336P and also in Sunshine’s 100% held adjoining ATP 795P permit.”

Subsequent testing of the deeper Juandah seams has intersected water zones, resulting in lower cumulative flow rates.

Water was being produced at up to 1,100 barrels per day during the later OFTs, which indicates good permeability in some of the seams, Sunshine said.

At 6am (EST) this morning, Coxon Creek-2 was at a total depth of 405m and conducting a wiper trip before running wireline logs.

Coxon Creek-2 is the first of up to four CSM pilot wells that are targeting the Juandah coal seam.

The well was designed to establish Juandah Seam CSG production and if successful, bring it into the Roma Joint Venture gas gathering system and to existing gas sales contracts. Elsewhere in the the Surat Basin, Queensland Gas Company has had good results with the Juandah seams.

The well is located in an area confirmed as potentially gas productive by the 2005 Rowallon 14 CSM corehole.

Participants in ATP 336P and Coxon Creek 2 are: Santos Group (operator with a 85% stake) and Interstate Pipelines, a wholly owned subsidiary of Sunshine Gas (15%).