Bandanna, which was purchased by Enterprise Energy in a $A241 million share sale last year, will commence drilling this month at a number of its 100%-owned tenements.

At Springsure Creek in the Bowen Basin up to three rigs will be used from now until June to increase resource inventory.

Previous drilling results at the tenement indicate the presence of low ash, low sulfur potential raw thermal, underground coal product.

At the Arcadia tenement in the Bowen Basin drilling will commence this month using two rigs to obtain coal quality data. Previous drilling has indicated the tenement has semi coking coal potential.

At Arcturus in the southern Bowen Basin drilling will commence this month with one rig to investigate a shallow, potential open cut thermal coal resource.

At Fernlee drilling will start in February to investigate shallow coal occurrences in an area of the tenement with the potential for open cut coal.

Bandanna shares were trading unchanged at 20c on Monday.