Sydney (Platts)--19Oct2012/507 am EDT/907 GMT
Commercial production has started from Australia's first shale gas well, operator Santos said Friday. The Moomba-191 shale well in central Australia's Cooper Basin is flowing natural gas at a stabilized rate of 2,700 Mcf/d from the Roseneath, Epsilon and Murteree shale targets. The well is only 350 meters from Santos' existing pipeline network and 8 km (5 miles) from the Moomba gas processing plant, which enabled it to be quickly brought on line. The start of commercial production at Moomba-191 marks a major milestone for Santos' Cooper Basin unconventional gas program, which began in 2004, according to the company's vice president for eastern Australia, James Baulderstone. "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," Baulderstone said. "While this is the first commercial shale well, and more work will be required to unlock the area's full potential, this is clearly a landmark for Australia's natural gas industry," he added. "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 our eastern states, plus valuable export revenue."Article continues below...Commodity Pulse Video: Analyzing China and Japan's recent dispute in the East China SeaWhy are Japan and China fighting over what is essentially a group of uninhabited islets and barren rocks in the East China Sea? Platts' Vandana Hari, Thomas Hogue, and Song Yen Ling investigate, as well as examine how the dispute is affecting the oil markets in the rest of Asia. Watch the video
Commercial production has started from Australia's first shale gas well, operator Santos said Friday. The Moomba-191 shale well in central Australia's Cooper Basin is flowing natural gas at a stabilized rate of 2,700 Mcf/d from the Roseneath, Epsilon and Murteree shale targets. The well is only 350 meters from Santos' existing pipeline network and 8 km (5 miles) from the Moomba gas processing plant, which enabled it to be quickly brought on line. The start of commercial production at Moomba-191 marks a major milestone for Santos' Cooper Basin unconventional gas program, which began in 2004, according to the company's vice president for eastern Australia, James Baulderstone. "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," Baulderstone said. "While this is the first commercial shale well, and more work will be required to unlock the area's full potential, this is clearly a landmark for Australia's natural gas industry," he added. "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 our eastern states, plus valuable export revenue."
Article continues below...
Why are Japan and China fighting over what is essentially a group of uninhabited islets and barren rocks in the East China Sea? Platts' Vandana Hari, Thomas Hogue, and Song Yen Ling investigate, as well as examine how the dispute is affecting the oil markets in the rest of Asia.
Watch the video
Santos said its existing infrastructure position in the Cooper Basin would be key to commercializing the region's resource potential. The company's Moomba plant, which is the major processing facility for gas and oil from the region, was built as a 700 terajoule/day facility and has recently been running at around 300-350 Tj/d. Further drilling is planned for the area, including an ongoing vertical well appraisal program and Santos' first horizontal shale well, planned for early 2013. Santos holds a 66.6% interest in the South Australian Cooper Basin Joint Venture. The other participants are Beach Energy (20.21%) and Origin Energy (13.19%). The commercial production of shale gas, which has revolutionized the US market in recent years, would be a boon for eastern Australia, where conventional and coalseam gas resources are being developed for both domestic consumption and LNG exports. Three export-oriented LNG projects with total capacity of just over 25 million mt/year are currently under construction in the Queensland city of Gladstone on Australia's east coast, including one operated by Santos.--Christine Forster, christine_forster@platts.com --Edited by Lisa Miller, lisa_miller@platts.com
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