Metgasco has now completed its initial drilling program. Three wells are now on production test and two further wells will be completed and placed on production test in the coming weeks.

“These wells will then be drawn down over a period of up to four weeks,” Metgasco said.

“The draw-down process involves pumping water out of the well to allow gas to flow. All five completed wells are being placed on production flow test to measure gas and water flows.”

The sixth well, MSC-08 has been drilled as a core hole to provide additional data on coal and gas content and composition. It is intended that this well will be converted to a production test hole in the future once this data has been acquired.

“Once the water draw down process has been completed, the company will be in a position to assess initial gas flow rates,” Metgasco said.

Metgasco owns 100% of PEL 16 located near Casino and Lismore in northern NSW, an area of no embedded energy supply in one of the fastest growing population areas of Australia.

The focus of exploration is coalbed methane of the Walloon coal measures of the Clarence-Moreton Basin. These measures have been very productive in Queensland’s Surat Basin.