The Gwydir-1 well in PEL 6 was drilled to a total depth of 814m and intersected about 4m of net coal over the cored interval from the top of the primary target Moolayember formation to the well's total depth.

Orion Petroleum said the well, the first specifically targeting coal seam gas in PEL 6, had confirmed the presence of the Moolayember play across the permit and provided critical information to locate follow-up wells to target the play in areas where thicker coal development was known to occur.

Gwydir-1 has been plugged and abandoned as planned. A second corehole in PEL 6, Milguy-1, is expected to be spudded later this month.

Once the Milguy-1 is drilled, ESG will complete its stage one and two farm-in to Orion's PEL 6, 427 and 428 permits.

ESG will become operator and hold a 75% interest in PEL 6, a 50% interest in PEL 427 and a 40% interest in PEL 428.