The Perth-based company issued 750,000 shares at 22c each under a June prospectus to replenish working capital.

Meanwhile, production casing has been run and cemented on the two CSM wells –Redfork-2-29 and Redfork-4-29 – which are currently shut-in awaiting completion.

The company said both wells successfully intersected their targets zones in the Dawson, Iron Post and Crowburg coals. Between two and four feet (0.6m and 1.2m) of thickness was encountered in each coal, consistent with other producing CSM wells in the field.

In addition, Redfork-4-29 intersected an Oswego Limestone zone with electric log values similar to other wells in the field that have produced gas from this interval.

These are the first of four wells to be drilled in this initial campaign. Redfork expects the four wells will be drilled, completed and tied-in to production infrastructure during the September quarter.

The company also plans to drill another six CSM wells this year in the Cherokee Basin.

Redfork has 100% ownership (80% net revenue interest) of oil, gas and CSM leases covering 4200 acres (almost 1700 hectares) in the Cherokee Basin.