The coal seam methane player, together with partner Molopo Australia, will drill to a target depth of about 600m.

The objectives of the well are to identify the presence and thickness of the Walloon Coal Measures on the western margin of the Clarence Moreton Basin; to establish the measure of lateral coal continuity from other known areas, including South Casino; and to measure relevant CSM characteristics of any coals intersected.

The well is located 23km southwest of Metgasco’s South Casino operations in PEL 16 and is part of the company’s reserve expansion drilling program.

Metgasco is funding 100% of the drilling of this stratigraphic test well, which will largely satisfy its funding obligations to earn a 51% initial interest in the CSM rights within PEL 13.

Once Metgasco has earned 51%, it will have the option to take its interest to 75% by spending a further $267,000 in PEL 13. Molopo is retaining 100% interest in the conventional petroleum (non-CSM) rights in the permit.

PEL 13 is currently being renewed and, following this, the permit will cover about 1200 square kilometres.