Beach Targets Shale Gas Well

Sky News Australia reports that Beach Energy Limited hopes to commence a pilot shale gas well in South Australia's Cooper Basin by the end of the year and expects to commence production in 2015.

The oil and gas producer says shale gas is far more attractive to the company than coal seam gas.

Managing director Reg Nelson says shale has revolutionised the US and that is likely Australia will follow suit.

Nelson said shale gas projects don't require the removal of water unlike coal-seam gas, and while the capital cost of shale gas wells are higher, they tend to be longer-life assets.

He says any future shale gas production from Beach in the Cooper Basin will go to both the export and domestic LNG markets.