Santos has begun operating a fourth rig in the Cooper Basin to further exploration for natural gas.
The Ensign 965 rig will drill eight wells in the remainder of the year, taking Santos to almost 90 wells drilled in the Cooper Basin this year.
With nearly 400 wells drilled in Queensland in 2018 in conjunction with its Gladstone LNG joint venture partners, Santos CEO Kevin Gallagher said the company was leading the way in east coast gas supply.
“As Santos has become Australia’s lowest cost onshore natural gas developer, reducing development well costs by more than 40 per cent in the Cooper since 2015, we now have the right cost base to invest in making the most of the vast discovered resource base of Cooper Basin natural gas,” he said.
“Drilling more wells and lowering production costs – extracting more gas for less money – is the best way to keep downward pressure on gas prices.”
By the end of the year, Santos expects to have supplied a total of 70 PJ, or nearly 13 per cent, of gas to the east coast domestic market.