Rick Wilkinson
OGJ Correspondent
MELBOURNE, Sept. 13 -- Enterprise Energy NL, Adelaide, has joined the list of natural gas producers in the Cooper basin of South Australia with the signing of its first sales agreement from the region.
The contract is based on production from its 25%-owned Smegsy-1 well in PEL106 about 45 km west of the Moomba treatment facilities. Contracts will be called in October to build a 4 km pipeline link to connect into the basin's main gas-producing grid. Smegsy is a one-well field.
The agreement provides for the purchase of gas, LPG, and condensate on a flexible production basis for up to 3 years from the well by the Santos-led South Australian Cooper Basin Producers (SACBP). It is the first contract of its type between SACBP and a third party.
Warren Leslie, managing director of Enterprise, says the contract also creates a strategic alliance between the company and the field's 75% partner and operator, Great Artesian Oil & Gas Ltd. of Sydney.
Smegsy was found in July 2004. The well flowed on test at rates up to 8 MMcfd from a Permian Patchawarra reservoir. Production should begin by yearend.