Drillsearch & Santos announce first production from Wet Gas joint venture

Image credit: drillsearch.com.au

Drillsearch Energy Limited has announced the start of production from the company’s Cadenza Wet Gas joint venture with Santos Limited in the Cooper Basin.

Image credit: drillsearch.com.au
Image credit: drillsearch.com.au

The joint venture with Santos is Drillsearch’s second producing Wet Gas joint venture after the Western Wet Gas joint venture with Beach Energy. Drillsearch holds 40% interest in Cadenza whereas Santos owns the remaining 60% and operates the project.

The tie-in of Cadenza is part of an active program of Wet Gas connections in FY2016. Yarowinnie South-1 and Varanus South-1 are next two wells planned to be brought online by the joint venture, with production from these wells expected to commence early in the second half of 2016.

“The start-up of production in our joint venture with Santos is an important milestone,” said Drillsearch Chief Executive Officer Walter Simpson, adding that the company’s share of connection costs is covered by the continuing free-carry under the Santos farm-in arrangements announced in 2013.

“Our FY2016 connections program remains on track and we are on target to derive a bigger contribution to production from Wet Gas starting from this year.”

Production from Cadenza is transported by pipeline to the South Australian Cooper Basin Joint Venture’s gathering network at Mica before being sent on to the processing facilities at Moomba.

Mr Simpson said that Drillsearch’s share of production from Cadenza is covered by a long term gas sales arrangement announced in conjunction with the Santos farm-in in July 2013.