Arrow said the flow test confirmed the high permeability of the target coal seams in the Kogan North area and that the coals were gas saturated.

"The well has been shut in prior to a workover to relocate the pump to a more optimal depth in the hole. The workover is planned late next week when high capacity down hole pumps and drive equipment will also be installed on the remaining four wells," it said.

Long term production testing of the five well pilot project will commence when the fit out of the surface facilities is completed in early November.

The project is located between the towns of Chinchilla and Dalby.