In exchange for being free-carried through the first exploration phase up to $2.5 million, Voyager will dilute its working interest in the coal seam zones of ATP 267P, PL 33 and PL 51 to 20.47%. However, the company said it will still retain its higher equity level in all other parts of the Nockatunga Project.

The JV said they plan to test for gas potential in the Epsilon coal seam in the Kihee anticline structure later this month utilising the OD&E rig.

The Epsilon Coal Seam extends over approximately 120 sq.km in the project area, and according to Voyager is interpreted to be unusually thick and has exhibited high methane gas readings in each of the wells that have penetrated it.

"Dartmoor-1 will test the play at a depth of about 1400 m on a prominent anticlinal feature where it is hoped there will be fracture enhancement of porosity and permeability," the company said.

"The coal seam is predicted to be approximately 34 m thick at the well location.

"There is potential for recoverable gas reserves of up to 48 billion cubic feet for the Kihee anticline with follow up potential in a number of other anticlines in the licence.

"These anticlines are in general associated with the existing oil fields, which produce oil from the shallower Murta sandstone reservoir."

Voyager will also be participating in an oil development well on the Thungo field in order to increase production and oil reserves recovery. It will be drilled in tandem with Dartmoor-1, which is expected to begin drilling this week.

Current gross production from the Nockatunga project is approximately 275 barrels of oil per day. Thungo-7 is budgeted to increase production by approximately 80 bopd or 29%. Voyager's share of costs for Thungo-7 will be approximately $650,000.

In other Voyager news, the company has appointed KPMG as its independent auditor following the resignation of Arthur Andersen at the time of the merger with Ernst & Young.