A series of open hole flow tests has recorded a maximum gas flow rate to surface of 0.59 million cubic feet per day on a half-inch choke accompanied by 1100 barrels of water per day.

“The Coxon Creek result is very pleasing and provides an optimistic outlook for the remainder of the pilot drilling program,” said Sunshine managing director Tony Gilby.

“These findings tangibly demonstrate the potential of the region’s Jurassic coal seams to economically advance gas deliverability within close proximity to existing gas export infrastructure.

“The forward plan for the well is to place it on pump and commence an extended production test and dewatering process to assess its potential prior to connection into the gas-gathering infrastructure.”

The Mitchell Rig 151 has been released and is now moving to the second of up to four Coxon Creek pilot wells to be drilled close to the Rowallon-14 CSM core hole, which was drilled last year.

Gilby said the completion of the Coxon Creek pilot program would advance the establishment of a new Jurassic CSM productive fairway in ATP 336P, which would enable Sunshine to pursue its interests in its neighbouring 100%-owned ATP 767P and 795P permits.

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