The junior explorer said drilling is expected to take two weeks to reach total depth.

"he ground has dried out but the wet conditions have slowed assembly operations," Icon said.

Elsewhere in the permit, Icon is drilling its Lydia-1 coal seam methane exploration well ahead in the Walloon coal measures to a proposed depth of 780m.

Meanwhile, the Natasha-1 well has been completed and prepared for testing operations.

"Water samples are being recovered to ascertain the salinity of the water coming from the coals," Icon said.

The company added the well logs indicate that the upper portion of the well contains 11m of high quality coal and 50m of highly carbonaceous shales.

"The carbonaceous shales are rich in organic matter and are expected to contribute gas. The testing procedure requires de-watering and it will be some time before we will know if commercial gas can be produced from the well," the company said.

Icon Energy holds a 100% interest in ATP 626P. The wells are midway between the townships of Goondiwindi and Moonie just off the Newell Highway.