The wells, which are drilling as part of the Rhino three well drilling program, are targeting the Big Injun sand formation in Union district.

The company plans to drill the wells to a depth of around 5,200m with a vertical depth of 2,100m, and intends to complete with multiple frac stages using varying spacing dependent on future wireline data.

For compartmentalisation of the reservoir during stimulation, Cunningham has selected the Packers Plus System frac system, while plans to complete the Rhino drilling program in May 2014.

Cunningham Energy Ryan Cunningham said the company is again excited to be part of this new horizontal method of producing the Big Injun oil sand in the Appalachian basin.

"The company is seeing excellent oil shows and reservoir characteristics through the Rhino drilling program thus far and we expect that trend to continue as these next two wells reach total depth," Cunningham added.