In a statement yesterday, the company said the two plays, known as Heron North and Heron South, in the Elang/Plover Formation were now estimated to contain 5.5 trillion cubic feet of gas, up from 3.3Tcf.

MEO said the results had “substantially increased” its confidence that the two structures contained enough gas resources to underpin or supplement its proposed liquefied natural gas and methanol plants.

Managing director Chris Hart said the first appraisal well, to be drilled in September, would target both the Epenarra and deeper Heron structures. The second well would target the Plover Formation in the Blackwood prospect, it said.

“Given the advanced stage of planning with our secured Commonwealth environmental approvals for the company’s gas conversion projects… the company has extraordinary versatility to commercialise gas from different reservoirs with a range of gas qualities,” Hart said.

MEO has contracted the West Atlas jack-up rig to drill at least three wells in the permit.