QGC said gas coming from the Taroom coals when added to the previously known prospectivity of the Juandah coals boosted the potential of the gas reserves of the Undulla Nose play by 30% or more over previous estimations.

The Undulla Nose extends from QGC's Berwyndale South project in ATP 632P to its Bellevue project in ATP 610P.

“The Lauren-3 well, accessing only the underlying Taroom coals averaged 653,000 cubic feet per day (cf/d) last week, peaking at 748,000 cf/d," QGC said.

"The Lauren-2 well, tapping all of the Juandah coal seams, has produced at a daily rate as high as 538,000 cf/d and produced at an average rate of 504,000 cf/d last week; and in its first week of testing the Lauren-1 well, a converted core well accessing some of the Juandah seams, produced at an average 51,000 cf/d.”

The location of the Lauren wells – 10km from the Argyle pilot - also boded well for the area's CBM reserves, according to QGC.

"To achieve these production levels so quickly and without pumping support from other wells in the vicinity, reinforces QGC’s view of the potential for coal seam gas, right across the Undulla Nose tenements,” the company said.

ATP 620P (Argyle) is owned 59.375% QGC and 40.625% Pangaea Oil & Gas; ATP 610P (Bellevue) is owned 70.625% QGC and 29.375% Pangaea Oil & Gas. ATP 632P (Berwyndale South) is owned 100% QGC.