The company said that it is expected that the well will begin the coring operations in the prospective coal sequence on January 17, 2010. Monslatt 3 is located 1.5km from Monslatt 1A and has been positioned to allow a production pilot well to be located in between the Monslatt 1A and 3 wells.

The Lucas- Mitchell Rig 180 is currently preparing to start the rig move from the Kanaka 1 well (drilled in December last year) to the Stainburn Downs 1 location (approximately 15km south of the Kanaka 1 location). Stainburn Downs 1 is a coal seam gas core well designed to evaluate the Permian aged Betts Creek formation and Aramac Coal Measures.

Due to rainfall in the area, the general access to the both the locations has been difficult, however conditions have now improved to the extent that resumption of operations is possible. It is expected that Stainburn Downs 1 will spud early next week.