Sunshine said it will usd the funds to drill in ATP 645P in the second half of this year. ATP 645P lies just 20km to the west from Mosaic Oil's Churchie-3 well, which recently flowed gas at a rate of 20 million cubic feet per day.
According to Mosaic, this was one of the largest gas flows recorded in the Surat/Bowen Basin area of Queensland.
Sunshine told the market it was encouraged by Mosaic's discovery, which it interpreted as having positive implications for the hydrocarbon prospectivity of the region.
"A schematic cross-section of Sunshine's ATP 645P suggests that the Permian Tinowan Sandstone in which Mosaic's gas flow was discovered also occurs down dip in Sunshine Gas' ATP 645P," Sunshine said.
"Sunshine's strategy in acquiring this permit was to test the Permian aged Tinowan Sands in faulted anticlinal traps for gas generated in the Taroom Trough."
