Australia-listed State Gas is taking a 100% interest in PL 231 in Queensland which contains the Reid’s Dome gas project.

State Gas confirmed Wednesday it had started the process to increase its interest in the licence from 80% to 100%.

The decision came after the company announced the successful drilling and testing of the Nyanda-4 coalbed methane and conventional gas well.

The well was drilled to a depth of 1200 metres and was interpreted to have intersected 38 metres of net coal and 25 metres of carbonaceous shales and thinner coalbeds.

State Gas noted that data obtained during drilling provided good gas shows from a depth of about 392 metres and an overall increase in gas content with depth, adding gas shows were still being seen at the well’s total depth.

The company also revealed a 150-metre core zone sampled 12 seams of good quality bright coal, with gas observed bubbling from the coals and nine samples were taken for desorption testing.

It added the cored zone also intersected seven zones where light oil was observed bleeding from fine-grained sandstones, along with gas hissing.

State Gas had originally intended to plug and abandon Nyanda-4 after drilling but said Tuesday it would instead suspend the well for future re-entry and testing following the results.

Four drill stem tests were also carried out over an interval ranging from 441 metres to 940 metres depth which established permeability and the presence of roughly 100 psi over-pressure within the Reid’s Dome Beds at Nyanda-4.

Nyanda-4 lies about 13.5 kilometres south of the recently drilled Primero West-1 well which flowed gas from the Cattle Creek formation.