NuEnergy Gas (ASX:NGY) started drilling for the TE-B06001 well at its Tanjung Enim production sharing contract plan of development 1 contract area in Indonesia, according to a Monday filing with the Australian bourse.

The TE-B06001 well is the first of four planned coal bed methane wells under the company's early gas sales initiative, aiming for initial gas sales of 1 million standard cubic feet per day, the filing said.

The well will be drilled vertically to a depth of 463 meters, targeting multiple coal seams between 288 and 400 meters, per the filing.

Shares were up 15% in midday trade Monday.