Sydney Morning Herald: First shale gas flows into national grid

Commercial shale gas production has begun in Australia with Santos announcing this morning its Moomba-191 shale gas well in the Cooper Basin had been connected to the eastern states' gas grid.

Santos reported strong initial flow rates from the same well in August and this morning James Baulderstone, the company's eastern Australia vice president, said connection of the well was "a significant step forward as we work to unlock the vast unconventional potential of the Cooper Basin".

Santos said the well was only 350 metres from the existing pipeline network and eight kilometres from Moomba's gas processing plant, enabling 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.  MORE