Molopo said the results were pleasing as both the Stratford 4 and Stratford 8 wells in the Stratford pilot were designed and selectively completed to test the productivity of the coals at depths greater than 500m.

Both wells also have significant coal intervals behind the casing, which can be completed at a later date to add further production.

Molopo added that three further production wells are expected to start production soon.

Meanwhile, drilling has recently started in a five-hole program to extend the understanding of the basin, which lies in the Upper Hunter Valley, and test the potential for production in different areas.

This includes the Stratford 9 well, which will evaluate the potential for production from the Avon Seam at around 850m, and the Wiesmantel 3 well, which targets the Wiesmantel and Clareval seams in the southern part of the Gloucester Basin.