Partner Australian Worldwide Exploration said the well was spudded on Tuesday, and at 6am yesterday the Ocean Patriot drilling rig was setting surface conductor at a depth of 131m.
Netherby-1 will be drilled to a depth of 1823m to test the Waarre A sand and target additional gas reserves in the Basin.
The Waare A sand is the reservoir at the nearby Henry gas field.
According to AWE, an immediate follow-up sidetrack development well would be drilled if Netherby-1 is successful. The third development well in the project, Henry-2, would then follow.
The three-well development program will tie in the Henry gas field to the Casino project in the basin.
First gas production from the combined Casino and Henry development is targeted for the first half of 2009.
The VIC/P44 joint venture comprises Santos as operator with 50%, AWE 25% and Mitsui E&P Australia 25%.
