Spudded last Wednesday, LMGW1 is the joint venture’s second of two fully cored CSM exploration holes, which aim to test the southern and northern continuity of the thick, “highly prospective” coal seams of the Gloucester Coal Measures in the Stratford CBM Prospect, Molopo said.

The corehole, which has a planned total depth of 700m, will recover cores for gas and coal testing, and be made available for downhole permeability testing.

A fortnight ago on May 8, Molopo announced the program’s first well, LMGC1, had encountered 20m of gassy coal over six seams.

At the time, the Melbourne-based company said permeability testing results from the main coal seams were expected in July.

The Gloucester Basin permit, which covers 1050 square kilometres, is 100km north of Newcastle, which Molopo described as a “very desirable market for gas in which premium prices were expected”.

Lucas is operator of the Gloucester Basin project and holds a 70% stake, while Molopo holds a 30% interest.