Located at the Osage County project, the Redfork-2-29 and the Redfork-4-29 wells are currently flowing about 50 thousand and 20 thousand cubic feet per day, respectively.

In an attempt to stabilise the gas flows, the company has started dewatering the two wells, with combined production of about 70 barrels of load water per day and increasing casing pressures.

Redfork-4-29 was completed in only one of five pay zones encountered in the well, while Redfork-2-29 well is completed in four of the six zones it encountered.

The Perth-based company, which listed on the Australian Stock Exchange last November, said drilling and completion procedures on the two wells have resulted in initial shows of gas and pressures well above the average for the offsetting wells in the field.

Using these procedures suggests the potential for higher than average production rates as well as a substantial increase in ultimate recoveries and revenue for these wells, according to Redfork.

In addition, it said the drilling and re-completion operations to date have indicated that the coal beds in the acreage have sufficient quality, thickness and gas content to warrant continued drilling and refinement of completion procedures to fully develop the project.

Redfork executive director David Prentice said the two wells demonstrated the continuity of the coals across its Osage County landholdings.

“The Redfork-4-29 also discovered a new shallow zone that has apparently not been produced previously in this area,” he said.

“From a gross coal and reserve potential perspective, these wells are confirmation of the tremendous asset value that the company is developing in its Osage leasehold.”

Meanwhile, the company expects to spud its next two wells in this play within the next 30 days.

The Redfork-1-28 and 1-29 wells are expected to be drilled and completed by the end of

October, with a further six wells scheduled for completion in this calendar year’s drilling campaign.

In addition, the company is planning to undertake re-completions on two of its existing wells, bringing the total number of re-completed wells to five.

Once both programs are successfully completed, Redfork expects to have a total of 15 wells completed and tied-in to its production infrastructure by the end of this year.