A statement from ACM(a wholly owned subsidiary of Carbon Minerals NL) last week said initial pump tests produced water at a stabilised rate of slightly over 100,000 litres (about 650 barrels) per day, which it said confirmed the high seam permeability indicated by earlier testing.

It said prior to the workover, water production was virtually nil due to severe cement contamination of the target Breeza Seam which occurred following accidental damage while setting the production casing.

More important, it said, was the fact that methane began flowing flow after only four hours of pumping, when water level was at about 190 metres, some 50 metres above the test seam. The gas flow rate was not measured, and although low, showed noticeable increase during the ensuing 4 hours of testing.

Once the Breeza Seam has been fully assessed, it is planned to deepen Georges Island-1 by about 60 metres to test the 10 metre-thick Hoskissons Seam, which like the Breeza Seam is known to be both gassy and to have high permeability. The company is hopeful that Georges Island-1 will ultimately become a dual-seam production well.

The project is being project managed by Earth Resources Australia.