The company told the market this morning that three recently-drilled test wells indicate “extensive” Walloon coals that warrant further testing and development.

Based on these results, the Walloon coals appear to be about 20km and 14km wide in ATP 626P, it said.

In addition, seismic data shows more coals extending further west from Stitch-1 at depths not considered commercial for CSM production.

“It is too early to assess the reserves likely to be in place and the testing program announced at the start of the current drilling program will now commence,” Icon said.

One of the wells, Stitch-1, is being completed as a CSM well, after it found good development of Walloon coals below 1000m that show several coal seams of between 2m and 4m in thickness, Icon said.

Strong gas shows were encountered throughout the coal sections with readings of up to 78 units of methane gas, Icon said.

Another well, Natasha-1, has 11m of coal and 50m carbonaceous material, and free-flowed gas, of which 89% was methane.

“In addition, ethane, propane, butane, and isobutane were also measured in small quantities,” Icon said.

“These latter inclusions tend to indicate that the coal section contains small quantities of oil. The significance of this show in regards to oil potential has not been evaluated.”

Lastly, Lydia-1 was found to have the thickest and highest ranked coals with up to 15m. Preparations are underway to dewater the well to assess its commercial gas potential.