The reservoir section has been drilled using a coiled tubing unit utilising a nitrified brine fluid to ensure the reservoir is underbalanced whilst drilling. The result follows from the good flow rates recorded last week from Myall Creek 6 using the same drilling technique.

After recording wireline logs, a production packer will be set in the casing to isolate the producing zone. A workover rig will be subsequently used to install the production tubing. A flowline has already been installed to the well site.

Myall Creek 7 will be connected to Origin Energy’s gas gathering system with production expected in March 2004.

The coiled tubing drilling program will continue with the unit moving to Horseshoe 3 to test the Rewan reservoir.

Origin Energy CSG has a 100% interest in PL 174.