“The initial gas production volumes and high level of interference between the production wells this early is a very encouraging sign, and may support gas reserves certification earlier than expected, and on a significantly larger spacing than the current pilot,” managing director Dennis Morton said.

“This will potentially result in greater ultimate gas recoveries from fewer wells in a development context.”

Seven of the nine wells are on pump, with the remaining two acting as monitor wells to measure the level of interference to help determine well spacing and reserves optimisation. These wells should be placed on pump within the next two weeks.

Eastern Star also said gas production rates from three wells at Bibblewindi are still gradually increasing, and are now at an aggregate of 80,000 cubic feet per day.

Meanwhile, production from the three-well Bohena pilot continues to gradually increase, with an aggregate gas flow of 237 million cubic feet per day, with Bohena-3 continuing to record a gas flow rate of 125,000cfd.

The company said continued dewatering of all wells should result in steadily increasing gas rates over the next four-to-six months, with a view to achieving commercial rates and reserves certification from the middle of the year.

The Gunnedah Basin Gas Project is in exploration licence 238 between Narrabri and Gunnedah, covering 9100 square kilometres of the Gunnedah Basin.

The PEL contains one of the largest onshore natural gas accumulations in Australia, totalling 17,000 petajoules of gas-in-place in the two coal seams that are over 10m thick in each of two coal-bearing formations.

The Bohena Project area covers 265sq.km in PEL 238 and contains up to 3700PJ gas in place in coal seams of the Late Permian Black Jack Formation and the Early Permian Maules Creek Formation.

Interests in the project are operator Eastern Star (65%) and Gastar Exploration (35%).