Eastern Gas Begins Drilling First Horizontal Coal Seam Gas Well at Project Venus

Groundbreaking Horizontal Drilling Campaign Underway

Eastern Gas Corporation Limited (ASX:EGA) has kicked off drilling the Venus-2H horizontal appraisal well at its wholly owned Project Venus in Queensland’s Surat Basin. This well is the first horizontal coal seam gas (CSG) well ever drilled in the region, representing a notable technical milestone for both the company and the local industry.

The Venus-2H well is strategically designed to intersect with the existing vertical Venus-1 well, creating an integrated production pilot. This configuration aims to provide a controlled environment to gather vital data on reservoir connectivity, pressure behaviour, water production, and gas deliverability, critical parameters for assessing the commercial viability of the resource.

Operational Progress and Testing Plans

Drilling operations are expected to span approximately two weeks, after which Eastern Gas will undertake completion activities before moving into an extended production testing phase. This testing will evaluate long-term reservoir performance under sustained production, offering insights into permeability and pressure responses that underpin future reserve classification and development planning.

The company has completed all preparatory work, including constructing the drilling pad, mobilising Silver City Drilling Rig 34, and performing a workover on Venus-1 to ready it as a production and monitoring well. Eastern Gas plans to provide updates at key milestones such as drilling completion, well intersection, and the start of production testing.

Resource Context and Strategic Significance

Project Venus holds independently certified contingent gas resources estimated at 130.3 PJ (2C), with additional prospective resources. While contingent resources are not yet reserves and carry uncertainties regarding commercial recoverability, this appraisal program is designed to deliver the technical foundation necessary for potential future reserve conversion and commercial development.

Managing Director David Spring emphasised the importance of this campaign, noting it as the company’s first drilling effort since listing on the ASX and a critical step toward unlocking value from one of Queensland’s promising CSG projects. He highlighted the integrated pilot’s potential to yield a comprehensive dataset that will shape future development and commercial evaluation.

With global energy markets grappling with supply challenges and a transition to lower-carbon fuels underway, Eastern Gas is positioning itself to contribute to Australia’s east coast energy security through advancing its natural gas assets.