Comet Ridge said drilling in 2010 defined the 1400sq.km Gunn project area in the southwestern part of ATP 744P.
Last year it ran 252km of 2D seismic over the area.
The company says the Gunn area has a contingent recoverable gas resource of 1,870 petajoules and an additional 597PJ of prospective resources.
That resource will be tested with Gunn 2, which spudded yesterday.
After Gunn 2 the drill rig will move to ATP 1015P and the Lake Galilee farm-in area, which is adjacent to the Gunn project area.
Comet Ridge farmed in to the Lake Galilee area in July.
It signed an agreement with Queensland Energy Resources to earn a 75% stake by agreeing to drill two wells on the area by the end of November, three additional wells within another year, and then four wells and a pilot well by the end of November 2014.
"With the market in eastern Australia tightening for natural gas, the company is pushing ahead with plans to convert its considerable resource base to reserves in both the Galilee Basin and at Mahalo (ATP 337P) in the Bowen Basin," Comet Ridge managing director Tor McCaul said.
