The company said ATP 811P has gassy coals at reasonable depths for potential development and complements its existing coalbed methane holdings in the northern Bowen Basin region.

Meanwhile in its 100% held ATP 645P, Sunshine said the completed Overston-2 work-over had met all objectives.

Managing director, Tony Gilby, said this result increased the likelihood of establishing conventional gas reserves in the Overston area.

“A stabilised gas flow rate of approximately 500,000 cubic feet per day accompanied by hydrocarbon liquids has been achieved,” Gilby said.

“The gas flow was through a one-inch choke and was measured using a Flow Prover.”

He said Sunshine was now completing studies to assess Overston-2 reserves and development options.

The well completion links gas from three Permian age sandstone intervals – the Basal Sandstone from 3,105 to 3,110m, the Overston Sandstone from 2,995 to 3,005m, which would not flow stabilized rates after hydraulic fracture stimulation, and the Tinowon Sandstone from 2,887 to 2,910m.

Overston-2 has now been shut-in, with an extended well test through a separator to follow.

Meanwhile, the company reports its Narrene-1A exploration well has been drilled to a depth of about 2,240 metres in a sidetrack hole and 7 inch casing run and cemented. Sunshine is now preparing to drill to a depth of 3050 metres into the primary target Tinowon Sandstone. It is expected to reach total depth by midweek.

Narrene-1A is about 6km southwest of the Overston Gas Field and will address conventional gas-in-place potential of about 91 billion cubic feet.