The well is expected to come online this month, although it will take several months to ramp up to peak production.

“An investment in quality steering technology provided clear imaging of the coal and has contributed to the success of the well,” WestSide managing director Mike Hughes said.

“Drilling operations are continuing and progressing on track, with the remaining

phase 1 drilling program planned to be completed by the end of August.”

Gas sales volumes from the field remained stable, with an average of 11.5 terajoules of gas per day sold last month.

Planning for the second phase drilling program is underway, which is to be started later this year to capitalise on the success of phase 1.

The company is conducting a fast-tracked ramp up of its development of the field in order to meet a binding 20-year gas sale agreement that it struck with Gladstone LNG participants earlier this year.

The deal will lead to a supply of up to 65TJ per day to the project.

“The stability of the production from existing wells and the successful drilling of this lateral well and the two vertical wells earlier in June have given WestSide further confidence in the expansion of the Meridian gas field,” Hughes said.

“This second phase drilling program will also be funded out of existing cash reserves.”

WestSide is assessing several debt financing proposals from potential financiers to fund future development costs.