“This is essentially pipeline grade gas with no further processing required for delivery to market other than dehydration and compression,” said Sunshine Gas, the operator and 100% leaseholder.

“Sunshine views this result as another good sign for the potential development of shallow gas reservoirs at Champagne Creek.”

The company now plans to use a gas and water separator to get a stabilised gas flow rate from the zone.

The flow will allow reserves to be calculated in the third quarter, it is expected.