SANTOS has today announced Australia's first commercial shale gas production in the Cooper Basin.
The Moomba-191 shale well is flowing natural gas at a stabilised rate of 2.7 million standard cubic feet per day (mmscf/d) from the Roseneath, Epsilon and Murteree shale targets.
Santos initially announced success at Moomba-191 in its interim report in August.
"The Moomba-191 shale well was another milestone for Santos Cooper Basin unconventional gas program, which began in 2004," James Baulderston, Santos vice-president Eastern Australia, said
"The connection of the Moomba-191 well is a significant step forward as we work to unlock the vast unconventional potential of the Cooper Basin," Mr Baulderstone said.
This is the first commercial shale well, and more work will be required to unlock the area's full potential.
Producing commercial quantities of natural gas from the Cooper's shale rock formations would provide the potential for ongoing energy security for South Australia and eastern states, plus valuable export revenue, Santos said.
The well was only 350 metres from the existing pipeline network and eight kilometres from Moomba's gas processing plant, which enabled it to be brought on line quickly.
Further drilling is planned for the area, including an ongoing vertical well appraisal program and Santos first horizontal shale well planned for early 2013.
Premier Jay Weatherill and Mineral Resources and Energy Minister Tom Koutsantonis are at the officially opening of the Moomba-191 well at Moomba today.
Santos has a 66.6% stake interest in the South Australian Cooper Basin Joint Venture. The other participants are Beach Energy and Origin Energy.
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