The 32-hole, 3000m drilling program at EPC 1955 is targeting Taroom coal measures less than 100m from surface.

The drilling program will be specifically focused on the southern area of East Wandoan, where the previously announced 23.9Mt inferred resource was identified.

Cuesta Coal managing director Matthew Crawford said kicking off the drilling program at East Wandoan was in line with the company’s exploration goals for 2012.

“The board is confident that our resource drilling campaign will result in a significant resource increase at East Wandoan,” he said.

Cuesta recently opened its initial public offer period and was seeking to raise $34 million in capital prior to its upcoming listing on the Australian Securities Exchange.

Cuesta said it was generating interest in the IPO from a mix of retail and institutional investors, from both Australian and international markets.

Trading on the ASX is scheduled to start on April 5.

Cuesta formed in September last year to acquire the available securities of Queensland coal exploration company Blackwood Coal in preparation for a public listing.

Cuesta’s tenements are located in Queensland’s coal bearing regions of the Surat, Bowen and Galilee basins.

The company is intending to drill 10,000m during 2012.