Senex Energy has encountered gas flows at its Kato-2 coal seam gas (CSG) exploration well located in Queensland Surat Basin in Australia.

The well reached a total depth of 304.6m where nearly 240m of core was collected, with 28 coal and carbonaceous shale core samples currently being analysed for gas composition, gas saturation and other attributes.

Senex expects that the well will reach a total depth of 285m through core analysis and extensive down hole logging and testing.

Senex managing director Ian Davies said the preliminary results from the drill stem tests indicated excellent permeability while the net coal seam thickness was in line with that intersected in Kato-1.

"The results of the coring and permeability testing has shown that the CSG potential indicated in ATP 771P [permit] continues into the neighbouring ATP 593P," Davies said.

The well’s drill stem testing is intended to investigate the CSG potential of the Walloon Coal Measures in the north western region of the Queensland Surat Basin, about 38km south of Injune.

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Kato-2 intersected 10.5m of net coal in the Juandah and Taroom Coal Measures along with 5.6m of net gas bearing carbonaceous shale, during the coring of the Walloon Coal Measures.

Preliminary results from four successful drill stem tests in both the Juandah and Taroom Coal Measures also reported excellent permeability, with gas flowing to surface from one test, Senex said.

Kato-2 forms the second well in a two-well exploration drilling programme by ATP 593P joint venture, operated by Sanex, and is an extension of the work already undertaken by the joint venture in the adjoining permit ATP 771P.