The Brisbane-based company said the Pegasus-1 exploration well – the first of a planned two-well program – and spudded on the weekend using the Mitchell Rig 105.

The prospect is located to the north of Sunshine's Lacerta CSM pilot project.

Managing director Tony Gilby said core acquired at this location would provide coal thickness and valuable gas content data.

“Regional data suggested the presence of deeper Permian coal, which if proven up could be a useful adjunct to Lacerta,” Gilby said.

Also in 767P, the Mitchell Rig 101 has now spudded Lacerta 16 – the last of four, single-well CSM pilots.

Drilling of Lacerta 12 in nearby ATP 795P is also underway, with coring operations having reached 216m.

After drilling Lacerta 12, Mitchell Rig 123 will move north to drill two wells at Atria, another Permian CSM prospect in ATP 684P.

Following Atria-1 and 2, the rig will return to Lacerta to complete the scheduled core-hole program.