The tie-in pipeline will be about four kilometres long and construction is anticipated to be completed on February 15. The pipeline is expected to be commissioned on or about February 19, Great Artesian said.
The Smegsy Joint Venture (Great Artesian operator and 75%; Enterprise Energy 25%) has negotiated the first third party gas sales agreement and construction agreement in the Cooper Basin with the SACBP.
“Under the terms of the construction and maintenance agreement, the SACBP will operate and maintain the pipeline and connection facilities during the life of the gas field,” Great Artesian managing director Ray Shaw said.
“Pipeline construction and maintenance costs are being met by the joint venture. Once constructed, gas and condensate produced at Smegsy-1 will be transported to the SACBP processing facilities at Moomba for onward sale.”
Once the tie-in pipeline is completed, an initial phase of extended production from Smegsy-1 of up to three months will allow determination of optimal flow rates, according to Shaw. Following this, the partners will be in a position to forecast future revenue earnings.
Smegsy-1 produced gas flows during previous testing from two intervals within the lower Patchawarra Formation at rates of up to 8.3 million cubic feet per day.
Participants in the SACBP are Santos Limited (operator), Santos Petroleum Pty Ltd, Bridge Oil Developments Pty Ltd, Santos (BOL) Pty Ltd, Vamgas Pty Ltd, Alliance Petroleum Australia Pty Ltd, Reef Oil Pty Ltd, Delhi Petroleum Pty Ltd, Origin Energy Resources Ltd, Novus Australia Resources NL and Basin Oil Pty Ltd.
