Purus said chip samples of the target Killara Coals were taken and the gas content is currently being measured.
The company said it would decide whether to keep GPE-1 as a production or observation well, after it finishes drilling and appraising all four wells in the Gordon Project.
GPE-1 has now been suspended and the drilling rig is moving to the second well in the program, PGE-1, which has a similar target depth.
Purus, which raised $9 million in an IPO last September, is the first company to explore the Otway for CBM.
It plans to explore and commercialise CBM for the southeastern Australian gas market. It says it has already held initial discussions with natural gas wholesalers, which have shown interest in buying gas from the company.
Purus intends to drill four slim core holes to depths of around 1000m in the Casterton and Warrnambool areas to sample seams in the Killara Coal Measures already identified from detailed research of the region. Petroleum exploration wells drilled over the last few decades have already confirmed the existence of natural gas in the area.
If the initial drilling is successful, Purus plans to establish a trial gas field to determine the commercial viability of gas production through assessment of gas flow rates and other production parameters. Depending on the results, the board then plans to commission a bank feasibility study for the full production and development of one CBM area, which could involve raising additional funds.