The CSM explorer told the market yesterday that five SIS wells would be drilled in the Stratheden joint venture, in which it is partners with CS Energy, as the second phase of the pilot production program.

This follows the completion of a core drilling program and the restart of a testing program, which is expected for completion by year-end.

Metgasco said the purpose of the pilot programs was to establish production flow-rates at the SIS wells and help prove up more reserves.

All approvals have been received for these programs and earthworks have begun, the company said.

The new wells will be drilled using the Ensign ADR 100 rig, which recently arrived in Australia from Canada and is being assembled and tested before moving to Casino next week.

The company intends to drill inseam lateral wells of up to 1000m in length into various seams in the Walloon coal measures. The pilot wells of this program will target the Richmond, Tomki, Codrington and Gundarimba seams.

“Metgasco has identified SIS drilling as the preferred drilling technique for the types of coals present in the Clarence Moreton basin based on analogues with the Arkoma basin in the US,” the company said.

“In addition, the company has redesigned well completion procedures and pumping systems for the wells.”

The pilot production wells will be drilled and dewatered over the coming quarter.

Metgasco has signed up Vectra CBM LLC to provide drilling and well completion advisory services during the forthcoming pilot drilling program.

Senior representatives of Vectra will be onsite at Casino during this drilling program

Metgasco claims to holds the largest certified gas reserves in NSW, with independent certification of 1.08 trillion cubic feet of possible gas reserves (3P) and 21 BCF of probable gas reserves (2P).