The maiden Megascolides-1 well (named after a threatened species of giant Gippsland earthworm that grows up to a metre long) will also target conventional gas targets at around 2000 metres in the Crayfish formation. Crayfish is productive in offshore fields.

A Karoon statement said at 1005m within the CBM target interval continuous coring commenced in inter-bedded tight sandstones shales and coals to a depth of 1110mRT. Seams to over 1m thick were cored and are currently undergoing analysis.

“Early qualitative results show gas is present on the coal and gas desorbsion is occurring. This is supported by mud logging data showing methane, ethane, propane, butane and pentane through the cored section with high peaks associated with the coals,” said the report.

Karoon managing director Bob Hosking said downhole seismic would be acquired from the $1.5m well to start mapping out the prospectivity of the Narracan. While there were conventional gas targets he said the play was principally targeting CBM.

Hosking also said Planet Gas was commencing a 50-well CBM program only 20km away.