In a statement yesterday, the CSM explorer has recorded “excellent free gas shows” in the Walloon Coal Measures during coring from the most advanced well, known as Corella-E1. However, equipment is currently being mobilised to the well to retrieve a lost drill string from the well.

Corella-E1 is one of four wells currently under operation belonging in the Stratheden joint venture area of the permit, where Metgasco holds an 85% interest in partnership with CS Energy.

The second well, Corella-E2, was yesterday coring ahead towards a total depth of 740m, where Metgasco says it has already observed free gas shows and has recovered a core sample comprising a well-developed sequence of coal measures.

The other two wells, Corella-E3 and Corella-E4, were at different drilling depths.

Another six potential wells will be drilled in this area in a bid to prove up 540PJ in 2P gas reserves. Under the farm-in terms, CS Energy is funding the costs of up to 10 of the core wells and all six trial production wells.

Elsewhere in PEL 16, Metgasco is undertaking drilling and coring operations on two 100%-held CSM wells, designed to expand 2P reserves by 100PJ to establish sufficient gas supplies for Metgasco's proposed Richmond Valley Power Station.

A well-liner is currently being installed at Riflebird-E1, which has been cored to a depth of 522m, while Riflebird-E2 is drilling ahead at a depth of 232m.