The New South Wales-based company said this seam appeared to have the same character as the top of the Richmond seam, which is the focus of its pilot production program at South Casino. Wireline logging will be undertaken over next week to confirm this.

Metgasco said confirmation of the Richmond seam at Middle Creek-1 would extend the South Casino gas field 15km southwest of the existing pilot project. Coal samples taken from the seam and placed in desorption canisters show that the seam is gas bearing, the company said.

This exploration program is targeting seams in the top 230m of the Walloon coal measures. Additional gas-bearing seams have been intersected at 425-427m and 492-494m.

Yesterday, the rig was drilling Middle Creek-1 ahead at a depth of 498m. Drilling is planned to continue for another 100-150m to the base of the Walloon coal measures, with wireline logging to follow.

Subject to equipment availability, further well testing may be undertaken in PEL 113.