The Brisbane-based company yesterday said its Lacerta-7 well, in permit ATP 795P, has been successfully brought into production.

It is the first of four initial pilot production wells on the Lacerta Field to undergo testing.

Sunshine said at start-up, the well recorded an unstabilised water rate of 850 barrels a day and the pumps have been started at a low RPM, which when increased will see a rise in water production.

The water was accompanied by free gas flows, which are also expected to increase as dewatering progresses, it said.

Managing director Tony Gilby said completion of Lacerta-7 and the resulting gas/water flows represented a “milestone achievement” for the company in relation to development of the field.

“We are very encouraged by this initial production rate and expect the gas flow rate to gradually increase as the coal is progressively dewatered,” Gilby said.

He said the beginning of production testing coincides with the previously announced activity program on the field.

The program includes 16 core holes to delineate and quantify the Lacerta resource and a further eight pilot wells to assist in the certification of proved and probable (2P) reserves.

The Mitchell Drilling Rig 101 is expected to spud Lacerta-23, the first of these eight new wells.

Meanwhile, at its 16-well Lacerta corehole program, Sunshine said the Mitchell Rig 123 is presently drilling the first CSM corehole, Lacerta-11.

“The core holes will provide technical information to assist with the reserves certification process and further refine the company’s understanding of the Walloon CSM fairway in the permit,” it said.

The program includes 16 core holes to delineate and quantify the Lacerta resource and a further eight pilot wells to assist in the certification of proved and probable (2P) reserves.

Sunshine holds a 100% working interest in ATP 795P.