The Montani 1 coal seam gas (CSG) exploration well has commenced drilling as part of Galilee Basin exploration program. The well was at a depth of 207mt having run and cemented the 7′ casing to 205mt.

Montani 1 is designed to evaluate the primary objective Betts Creek Coal Measure sequence in the central permit area of ATP 744P. The well is planned to take about 16 days to drill and is expected to reach a total depth of approximately 950mt.

The Macdonald 4P pilot production well was at a depth of 290mt and drilling ahead. Drilling recommenced after being suspended temporarily while the drilling contractor made upgrading modifications to the rig.

Two pilot production wells, Macdonald 4P and Macdonald 6P, are currently being drilled to access CSG from the Brunner Formation and also to evaluate the deeper Paparoa Formation for gas production potential. The wells are expected to be completed with pumps installed to lift water from the coals which will then allow gas to be produced.

This drilling and pilot testing operation is being operated by Chartwell NZ as part of the Phase 2 Farm-in program, which will earn the company a further 30% equity interest in the permit.

Chartwell NZ is the operator of PMP 50100 and currently holds a 20% equity stake in the permit with the remaining 80% being held by Macdonald Investments.