Santos has commenced commercial operations of its first shale gas well in South Australia, with unconventional gas now set to be used in homes around the state.

 

Premier Jay Weatherill turned the tap on the Moomba-191 in the state’s north, saying it represented a major milestone in the state’s gas industry.

 

“Unconventional gas has always been regarded as something that would happen in the future but today's opening demonstrates that that future has arrived,” Mr Weatherill said.

 

"We are now poised to capitalise on the huge potential of this resource in our State's far north -- just the sort of outcome contemplated when we drafted South Australia’s Roadmap for Unconventional Gas Projects.”

 

The Moomba-191 shale well is flowing natural gas at 2.7 mmscf/d from the Roseneath, Epsilon and Mrteree shale targets.

 

Santos Vice President Eastern Australia, James Baulderstone, said the Moomba-191 shale well was another milestone for Santos’ Cooper Basin unconventional gas program, which began in 2004.

 

“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.

 

“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. 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.

 

Further drilling is planned for the area, including an ongoing vertical well appraisal program and Santos’ first horizontal shale well planned for early 2013.