The Venus-2H horizontal appraisal well has produced excellent gas shows since entering the targeted coal seam at Project Venus, according to Eastern Gas Corporation.

Venus-2H has entered the Macalister Lower seam and is continuing to drill towards the planned intersection with the existing Venus-1 vertical wellbore.

Eastern Gas said the well had encountered intervals comprising up to 100 per cent coal cuttings and multiple excellent gas shows, with total gas readings of up to 25.4 per cent.

Related: Milestone Project Venus campaign for Eastern Gas

“These observations are encouraging and confirm the presence of high gas saturation within the target coal along the well trajectory,” Eastern Gas (ASX: EGA) managing director David Spring said.

“However, they are drilling indications rather than flow test results, and the productivity of the well will be determined through the planned dewatering and flow-testing program.

“Our immediate focus is on safely completing the ranging operations and drilling the final section required to achieve the planned intersection with Venus-1, then completion of our planned 1000m horizontal well path.”

Once the planned 1000m horizontal section is complete, the integrated Venus-2H/Venus-1 well system will be prepared for dewatering and flow testing.

The project is located in the Walloon CSG fairway in the Surat Basin.