Eastern Star Gas (ESG) has provided its bimonthly drilling update on its coal seam gas drilling operations in PEL238 and PEL 6, around the township of Narrabri, in Northern New South Wales Australia.

The company said that due to the wet weather experienced in the Narrabri/Moree area, all its drilling activities have been suspended. At this stage it is expected that ESG’s coring operations will recommence on the January 20, while the production rig is not expected to recommence drilling activities until the end of January, said the company.

Dewhurst 16H is the last of three single lateral production wells to be drilled as part of the Dewhurst lateral pilot programme. This pilot, which incorporates three single lateral wells drilled perpendicular to the fracture system and intersecting three vertical drainage wells, is located approximately 14km north-east of the existing Bibblewindi 9-spot vertical well pilot. This pilot is aimed at reserve growth in the Dewhurst Field.

Dewhurst 16H has reached a total depth of 2106.0m (MD) and had intersected the Dewhurst 13 vertical production well. The well is currently suspended pending well completion and surface facility construction. The drilling rig has been released and mobilised to the Tintsfield site for the upcoming Tintsfield lateral pilot addressing the Hoskissons coal seam. The pad for Tintsfield 5 is being prepared and the hole is scheduled to spud before the end of January 2010, subject to weather constraints.

Rosevale 1/1A is designed to evaluate the coal seam gas potential of the Hoskissons seam to the west of the recent tests at Coonarah 9 and Tintsfield 1, and will be deepened to delineate the Early Permian coal development near the western edge of the Maules Creek formation.

The intermediate casing has been set in Rosevale 1A at a depth of 422.7m and drilling operations were subsequently suspended for the Christmas shut-down. The well is currently suspended. Recommencement of drilling operations are expected on January 20, 2010.

Gwydir 1 is the third and final well to be drilled as part of the Stage 1 farmin program into the PEL 6, 427 and 428. Following the drilling of this well, ESG will complete the Stage 1 farmin and have earned a 50%, 50% and 40% interest in the CSG rights of the three licences respectively. Gwydir 1 is the first CSG well to be drilled in PEL 6 and is designed as a reconnaissance exploration well to determine the CSG characteristics of coals within the Triassic Moolayember Formation.

Gwydir 1 has reached a total depth of 814.0m after intersecting a total of 4.0m of coal in the Moolayember Formation. The well has been plugged and abandoned. The well has confirmed the presence of the Moolayember play across the extent of PEL 6 and provides control to locate follow-up wells to target this play in areas where thicker coal development is known to occur. The rig will be redeployed to PEL6 to drill Milguy-1 and is expected to arrive on site on January 22, 2010.