The company opened at 48c yesterday and closed at 50c. It then opened at 53.5c and at midday Sydney time was trading at 59c.

Pure reported yesterday that it had completed coring the first well, Holli-1, in a planned four-well exploration campaign in the permit, and has cored and drill stem tested the first coal package of the second well, Cameron-1.

At Holli-1, preliminary core and log analysis indicates about 35m of net coal was encountered in the Walloon coal measures, according to Pure.

"Twenty-one samples were taken for gas desorption testing," the company said.

"Laboratory analysis is ongoing, with preliminary results suggesting gas contents in the same commercial range as in Mt Organ-1, a previous coal seam gas well drilled within the permit [that] encountered 30 metres of net coal with gas contents as high as 7.5 cubic metres per tonne.

"Permeability testing indicates excellent permeability, with injection rates up to 1800 barrels of water per day."

Drill stem testing was not conducted on Holli-1 as equipment was not available. Pure plans to return to Holli-1 in the future to flow test the well or run a production pilot, or both.

The next well in the series, Cameron-1, was spudded on April 4.

Pure has now secured drill stem test equipment and has begun a series of tests.

"Drill stem testing of the first coal package of the Walloon coal measures flowed water at approximately 70 barrels a day, with free gas to surface," the company said.

"The well is now coring ahead at approximately 300 metres depth. Additional drill stem tests will be conducted over the remaining coals as they are encountered."

Pure managing director Steve Beardsall said the company was very pleased to see free gas flow from such a short drill stem test on Cameron-1.

"These first two wells are 10 kilometers apart, and 5 kilometers each from the original Mt Organ-1 well," he said

"With such excellent permeabilities, a thicker-than-expected coal section, good gas content, and large areal extent, these results are very encouraging for prospective pilot and development work going forward with this permit."

Following Cameron-1, the rig will move to the next two exploration wells in ATP852P, Gerard-1 and Daniel-1.