Sun Resources said the Lower Lance Formation coals over the intervals 4,910 to 4,935 feet (1,497 to 1,504 metres) and 4,960 to 4,986 feet (1,512 to 1,520 metres) were successfully cored.

“These coals were found to be notably gassy in contrast to the Fort Union coal sequence (i.e. 45 gas units recorded compared with 15 gas units),” the company said in a statement.

“These cored intervals are being comprehensively logged, the coals sampled and sent to a well known CBM laboratory, Terratek, in Salt Lake City, Utah, for various analyses to determine the CBM properties of the targeted coals.”

It said the hole will be left suspended for a testing program (subject to favourable laboratory results) at some time in the near future.

This well is the first attempt at evaluating 33,000 acres of leases in the Rock Springs project, where recent studies suggested up to 250 bcf (billion cubic feet) of gas may be recoverable from the coals in these leases, with further significant upside in the surrounding joint venture Area of Mutual interest.

The partners said there had been some downhole instability issues but despite that, some 264 feet (80.5 metres) of selective coring has been carried out over sections of the 70 feet (21 metres) of net Fort Union Formation and Lance Formation coals and immediate encompassing shale lithologies.

Interests are Sun Resources NL (Permit Operator) 40 - 45%, Victoria Petroleum NL 40 - 45%, Samson Oil & Gas NL (Well Operator) 10 - 20%.

Note: Sun Resources and Victoria Petroleum NL’s USA subsidiaries are farminees earning their interest in the project comprising the leases and pipeline infrastructure via a farmin agreement with well operator Kestrel Energy, Inc., a subsidiary of Samson Oil & Gas NL. Maximum interest of the farminees is subject to a back in right of an extra 10% project interest by Samson Oil & Gas NL’s subsidiary on the completion of project expenditure of US$3 million by the farminees over a 4 year or lesser period of time.