Perth-based Odyssey said yesterday that Eagon 1-7 - the first of 10 to 15 wells to be drilled in the initial development program - had spudded on Saturday in the northern Spring Creek area of the project.

It would be followed by Eagon 1-18, Speed B-6, Rippitoe 1-20 and Dalton-Counts 1-16.

Odyssey said all wells would be drilled in batches of five, with completions and tie-ins following immediately afterwards. The wells will have total depths of 1650-1950 feet (500-590m) and each is scheduled to be drilled in three to four days.

A number are expected to be completed and tied into existing production infrastructure before Christmas, with Marion and Odyssey selling gas from these wells into the North American winter - the traditional period of peak demand.

The primary objective of the program is to begin development of the Jester-Bloomington's 68 billion cubic feet certified reserve base in the Brown Dolomite and Granite Wash reservoirs.

The first five wells also fall within the companies' primary area of interest for the Wellington Limestone, and therefore have the potential for up to three separate completions - in the Granite Wash, Brown Dolomite and Wellington Limestone sections.

Odyssey said that given the successful completion of the initial program before Christmas, it expected development drilling to continue in the first quarter of 2008, with up to 60 wells planned across the project area.

The program is essentially infill drilling surrounding some of the region's most prolific producing fields from the original 1950s through to the 1980s development of the North Bloomington, Willow and Jester-Bloomington field areas.

Operator Marion and Odyssey hold 33.3% working interest each in the Jester-Bloomington project.