Santos Connects First Shale Gas Well

Santos has said that its Cooper Basin shale gas program with the Moomba-191 well flowed dry gas at a stabilised rate of 2.6 mmscf/d.  Moomba-191 is a dedicated shale well that flows from the Roseneath, Epilson and Murteree shale targets.

The well is located within 350 metres of the existing gas gathering infrastructure, and connection activities have commenced to provide Australia’s first commercial production of gas from a shale well.

The company also announced a net profit of $262 million after tax for the half-year ended 30 June 2012.  The headline half-year result is lower than the corresponding period which included gains on asset sales of $246 million.

Underlying net profit of $283 million for the first half is up 20% primarily due to higher gas and liquids prices and sales volumes, partially offset by higher cost of sales and exploration expense.

Santos had lifted production by 11% in the first half, driven by on-time project start-ups, record Western Australian gas production and progress in recovery of production constrained during 2011 by flooding in the Cooper Basin, Chief Executive Officer David Knox said.

.Knox pointed that company’s LNG projects remain on schedule with PNG LNG on track for first LNG in 2014 and GLNG in 2015.