“The drilling of horizontal in-seam well number 10 has now been completed and drilling equipment is currently being removed from the horizontal well,” the company said yesterday.

The current drilling program involves the completion of two horizontal holes, the coring of a pre-collar hole and the workover of vertical wells MSC-4 and MSC-6.

The drilling program is designed to improve the productivity of the field through predicted enhanced gas flows from horizontal drilling. Results from the horizontal wells, combined with the coring of MSC-08 to provide additional data on gas content, will assist with the reserve development strategy, according to Metgasco.

Horizontal well MSC-10 was drilled vertically to about 200m and then drilled at an incline until it reached the Richmond coal seam at a depth of about 500m. It was then drilled in-seam over about 700m to intersect with MSC-8, which will operate as its vertical offtake well.

“Over the coming week, the company expects to run liner, install pumps and flush the hole in order to clear it of drilling muds and coal fines,” Metgasco said.

“Once this is complete, the company will start flow testing MSC-10. The drilling rig will then move to commence drilling horizontal in-seam well number 9.”

MSC-9 will be drilled from the pad of MSC-8 to intersect with the existing vertical well, MSC-5, which will operate as its offtake.

Metgasco holds a 100% stake in PEL16, which is near Casino and Lismore in northern New South Wales.

The company says PEL16 contains a CSM gas resource of more than 4 trillion cubic feet of gas in-place and also has the potential for conventional oil and gas reservoirs.