The Mahalo 7 horizontal well is on production at the inseam well project in Australia’s Bowen Basin, Comet Ridge Ltd. said Jan. 25. It is producing in combination with the Mahalo 6 vertical intercept well, via the pump in Mahalo 6.

The gas rate in the proof of concept short horizontal well continues to build, and there is about 360 m of coal. Since mid-December, the gas rate has increased over time, and is now beyond 361Mcf/d.

The Mahalo project is 11 km from an infrastructure connection to the Gladstone LNG market.

Participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty Ltd. with 40%, Australia Pacific LNG Pty Ltd. with 30% and Santos QNT Pty Ltd. with 30%.

The vertical wells will likely be started up at the end of January, the company said.