Eastern Gas Reports Strong Gas Shows at Venus-2H in Surat Basin
Eastern Gas Corporation reports robust gas indications and steady progress at its Venus-2H horizontal appraisal well in Queensland's Surat Basin, advancing toward a key well intersection and flow testing phase.
- Venus-2H intersects target Macalister Lower coal seam
- Gas readings peak at 25.4%, well above 'excellent' threshold
- Drilling approaches planned intersection with Venus-1 well
- Completion of 1000m horizontal section and flow testing pending
- Resource estimates remain unchanged pending flow test outcomes
Strong Gas Shows Confirm High Saturation in Target Coal
Eastern Gas Corporation Limited (ASX:EGA) has revealed encouraging gas readings from its Venus-2H horizontal appraisal well in Queensland’s Surat Basin. The well has entered the Macalister Lower coal seam, with gas cuttings registering up to 25.4% total gas; a figure more than three times the program’s classification of 'excellent' at 8%. These readings suggest high gas saturation along the well trajectory, though the company emphasises these are preliminary drilling indications rather than definitive flow test results.
Drilling Progresses Toward Planned Well Intersection
Currently at approximately 860 metres measured depth, Venus-2H is drilling horizontally toward the existing Venus-1 vertical well, with an estimated 60 metres separating the two. The use of a downhole ranging tool aims to guide the final drilling section to achieve the planned intersection. Upon successful intersection, drilling will continue to complete a 1000-metre horizontal section within the coal seam. This integrated well system is then slated for dewatering and flow testing to evaluate reservoir pressure response, water production, gas desorption, and overall productivity.
Implications for Project Venus and Resource Estimates
Project Venus holds contingent gas resource estimates of 130.3 PJ (2C) and prospective resources of 536 PJ, according to prior disclosures. Eastern Gas confirms no material changes to these figures but notes that flow testing results will be critical to confirming commercial viability. The company’s Managing Director David Spring highlighted the significance of the gas shows and coal cuttings encountered, describing them as "encouraging" signs of high gas saturation. However, he reiterated that the ultimate productivity will depend on the forthcoming flow testing phase. The current drilling campaign builds on earlier milestones, including the commencement of the Venus-2H well, which marked Eastern Gas’s first horizontal coal seam gas well in the Surat Basin, designed to generate key reservoir performance data and assess gas deliverability first horizontal coal seam.
Next Operational Steps and Market Watchpoints
Following the planned intersection with Venus-1, the company will focus on completing the horizontal section and initiating dewatering and flow testing. These activities will provide the first substantive data on gas flow rates and well productivity, essential metrics for assessing the project’s commercial potential amid Australia’s tightening east coast gas market. Investors should watch closely for updates on operational milestones and flow test results, which will materially influence Eastern Gas’s development trajectory and valuation.
Bottom Line?
The Venus-2H well’s strong gas shows set the stage for critical flow testing that will ultimately determine Project Venus’s commercial prospects.
Questions in the middle?
- Will flow testing confirm the high gas saturation translates into commercial gas flow rates?
- How will the integrated Venus-2H/Venus-1 well system perform under dewatering and extended production conditions?
- What impact will Project Venus’s progress have on Eastern Gas’s positioning amid east coast Australia’s gas supply challenges?
