“The best gas shows in Champagne Creek-4 were encountered in the intermediate hole section,” Sunshine Gas said.

“In each of the three Champagne Creek wells drilled to date, the most consistently present gas-charged sand intersected has been at a depth of approximately 600m. The lack of significant gas shows in the deeper sands in Champagne Creek-3 and 4 suggests that the gas accumulation intersected by Champagne Creek 2 at this level is restricted in aerial extent.”

In each well, this sand has been secured behind casing but not tested. The company is now considering specifically targeting this section by drilling an additional well or testing Champagne Creek-3 through casing, or both.

A full review of results to date will be carried out at the completion of the current drilling program.

Sunshine Gas has a 100% stake in the prospect.