The permit covers an area of approximately 540 sq km and is located immediately north of the producing Roma Joint Venture field, of which Sunshine Gas holds 15%.
The company believes this area is prospective for both conventional gas and coal bed methane. Sunshine Gas will now commence developing an exploration work program for the new permit.
Recently Sunshine has been busy with the Overston gas discovery and has now scheduled testing of the Overston-2a well for July, dependent on the availability of the required equipment and service providers.
The test results will provide the JV (Sunshine/Samson 50% each) with additional information on the potential commerciality of the gas discovered, after the well was cased and suspended as a gas producer.
Overston-2a was drilled to 3140 metres with the Tinowon Sandstone section above the Wallabella Coal appearing to be relatively tight based on the initial flow test results.