In what was described as a “milestone” by the Perth-based company it has completed its production chamber for coal gasification.

Two parallel, 850m long in-seam wells have been drilled with a connection to a vertical ignition well.

The three-well system was completed on schedule and under budget.

The Bloodwood Creek JORC-compliant coal resource is 100 million tonnes.

If successful Carbon Energy will covert this resource into 2000 petajoules of in situ energy with more than 1000PJ of recoverable energy in the form of syngas.

Carbon Energy is a fully owned subsidiary of Metex Resources and is aiming to produce syngas as a cleaner energy alternative to coal.