Drill stem test 1, over the interval 609 – 631 metres (Lower Permian Maules Creek Formation sandstone), recovered 120 metres of water and drilling fluid in drill pipe. DST-2, over the interval 537-555 metres (Upper Permian Black Jack Formation), was unable to establish a packer seat (mis-run). DST-3, over the interval 660 – 715 metres (Lower Permian Maules Creek Formation sandstones), recovered 2 metres of drilling fluid in drill pipe.

As the prospective formations which recorded gas shows during drilling appear to be tight, Lynwood-1 will be plugged and abandoned and the rig then move to the next wildcat conventional gas well location to prepare to spud Brigalow Park-1. ESG has 100% of both wells.

Brigalow Park-1 is around 3 kilometres southeast of the Coonarah Gas Field and south of the connecting pipeline to the Wilga Park Power Station and is a newly identified prospect from the recently completed 2004 seismic acquisition and interpretation program.

It is mapped as a high relief anticline with an interpreted vertical closure several times larger than at the Coonarah gas field. Brigalow Park-1 will test this new prospect and if successful can feed more gas to the nearby gas-fired Wilga Park Power Station.

On its CBM business front ESG said hydraulic fracture stimulations of the Bohena seam and Upper Maules Creek seam in the Bohena South-1 well have been successfully completed. It said the well completed the current fracture stimulation campaign of two coal seams within each of three wells in the Bohena project area.

Surface facilities are now being installed so that each of the stimulated wells at Bohena-9, Bohena South-1 and Bibblewindi-1 can shortly be placed on production flow test.

The stimulated wells at Bohena-9, Bohena South-1, and Bibblewindi-1 together form an integral part of the Gunnedah Coal Seam Gas reserves certification process in the 260 square kilometre Bohena Project Area.

The Bohena project area contains up to 3,700 PJ (3.7 trillion cubic feet) gas in place within the Late Permian Black Jack Formation and the Early Permian Maules Creek Formation coal seams. Interests in the Bohena project are ESG (earning 32.5%) Hillgrove Resources (earning 32.5%) and Gastar Exploration (reducing to 30%).