Shale gas stocks sold off but signs are positive
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
There are hopes that Australia can replicate the shale gas boom in the US, with the amount of recoverable shale gas in the Cooper Basin estimated at 85 trillion cubic feet by the US Energy Information Administration, but development has so far been slow.
Late on Friday afternoon Beach reported that the Moonta-1 unconventional vertical well had flowed gas at a maximum controlled rate of 2.6 million square feet per day (MMscfd) and was now flowing at 1.6MMscfd.
The disappointing rate fell short of expectations of up to 4MMscfd, said the Macquarie analyst Kirit Hira, based on Beach's two earlier Cooper Basin shale gas wells Encounter and Holdfast.
Beach shares fell by 9 per cent on Monday, or 12.5¢, to $1.33, while partner Icon Energy fell more than 6 per cent to 22¢ and both Drillsearch and Senex Energy fell 4 per cent, to $1.41 and 70¢ respectively.
A spokesman for Beach said there was an "element of surprise" at the sell-off, given the company was in the early stages of an exploration program.
The spokesman said Beach was "on a learning curve" to identify the sweet spots in the Nappamerri Trough and the drilling at Moonta had confirmed there was shale gas at depth in the Cooper Basin.
The next flow rates, from the Halifax well - held 60:40 by Beach and Icon - would be reported by early to mid next month.
Last year Santos announced the first commercial production of shale gas from the Cooper Basin, at the Moomba-191 well, which is still flowing at 2.5MMscfd, indicating flow rates will halve each year, a better decline rate than the US.
But a Wilson HTM analyst, John Young, said the Beach result was "reasonable". "I don't think this one well result means the whole [Cooper Basin shale play] won't work," he said.
"We're only three wells into an 11-well program. The actual flow rate was better than the two prior wells."
Call 1300 880 160
Start a chat
Schedule a call
