In a statement yesterday, Beach said Middleton was estimated to contain 6.3 petajoules of proved and probable (2P) recoverable sales gas reserves, while Udacha was thought to have 3.4PJ.

Both gas discoveries are located about 50km northwest of Moomba and 6-12km from the nearest existing gas infrastructure.

Development of the fields and the start of gas production are now subject to negotiation of gas sales agreements and arranging access to the existing infrastructure, Beach said.

Drilled in February, Middleton-1 flowed up to 12 million cubic feet per day (MMcfd) of gas from the Patchawarra Formation on drill stem test.

Production testing indicates that similarly high rates can be achieved from Middleton-1 when sales begin, Beach said.

While Udacha-1, also drilled in early 2006, flowed about 400,000cfd, Beach expects this rate could increase to more than 2MMcfd with fracture stimulation.

Beach said it considers the Middleton/Udacha area to have high prospectivity for further high deliverability gas discoveries.

As a result, a 180 square kilometre 3D seismic survey will be undertaken in this area early next year, to be followed by further exploration drilling.

Beach and Great Artesian are equal partners in Middleton-1.

Udacha-1 participants are operator Beach (15%), Great Artesian (32.5%), Magellan (30%), Enterprise Energy (12.5%) and Rawson Resources (10%).