The initial four-well Lacerta pilot has seen all wells cased and completed as future producers.

The company expects to start production testing of these wells soon and plans to drill a further eight wells in the area to access productivity of coal seams identified during the prior coring and pilot operations.

As many as 18 other CSM wells could be drilled at the Lacerta, Atria and Pegasus prospects, according to managing director Tony Gilby.

“Sunshine Gas plans to intensify activity around Lacerta on the strength of the very encouraging results encountered in the Walloon coal seams during the recent Lacerta pilot,” he said.

“Preparations are also underway to step up activities under the terms of the farm-in

agreement [covering four CSM permits] finalised with WestSide Corporation following its successful IPO in early January.”