In a statement yesterday, Sunshine said it expects to complete the existing four Lacerta pilot wells later this month, after which they will be production tested.

Subject to rig availability, an eight to 16 core-hole drilling program across the broader Lacerta CSM prospect is expected to start early next month.

Sunshine said this program would provide data to gauge the aerial extent of coal development and the range of CSM content and permeability. From this data, the company expects to be able to pick the locations of additional production pilots.

Two of these pilots, comprising four wells each, are planned for drilling between February and March.

Busy days at Overston

Workover operations on the Overston-1 well are set to start next Monday, in a bid to clean out the well bore, Sunshine said.

Once complete, a coil tubing unit is planned to re-enter and deepen the well using under-balanced techniques through the Lower Tinowon and Lorelle Sandstone sections.

Sunshine said the purpose of the deepening was to lower the current known gas level for these units, which have flowed gas from Overston-2, and also yield an estimate of undamaged gas flow rate capacity.

A further two Overston appraisal wells are planned in the second quarter of 2007.