Sunshine said testing in the 1990s at Conoco’s Paranui pilot project showed the 4,780-square-kilometre permit, which neighbours the Moura region, has significant coalbed methane potential.

The Paranui project involved drilling, casing, cementing and fracture stimulating three CBM wells. Flow testing resulted in gas flows of about 200,000 cubic feet per day.

“This is considered to be highly encouraging, given the now outdated technology applied at the time,” Sunshine said.

Drilling is planned for mid-next year.