The well was spudded yesterday, and at 6am local time today was at 218m and preparing to run surface casing.

Drilling is expected to take about 12 days to reach total depth of 2020m.

Bow Energy is paying 50% of the cost to drill, evaluate, case and suspend the well, to earn a 25% interest in PL 15 (excluding Boxleigh and North Boxleigh fields).

Meanwhile a clean-up flow test of the Waggamba-5H well in Pl 202 has experienced some operational delays and is now expected to be carried out within the next two weeks.

According to Mosaic, the well has been completed with production tubing string and is currently shut-in awaiting flow testing.

The well intersected about 426m of the main Tinowon Sandstone reservoir target with significant gas and oil shows while drilling to total depth of 3338m.

Subject to weather conditions, the company expects the well would be connected to the Waggamba gathering network for production testing via a temporary flow line within the next four weeks.

CS Energy has pre-paid $3.5 million for the Waggamba-5H drilling, completion and tie-in costs, and will be entitled to 50% of gas production and 35% of free oil and condensate.

Mosaic will retain 50% of gas and 65% of free oil and condensate production.