Oil and gas exploration company Beach Energy (ASX:BPT) has discovered a new gas field in the onshore Otway Basin in South Australia.
The mining company said initial testing at the gas field shows potential for commercialisation of a large gas resource.
The company plans to undertake immediate follow-up testing to confirm and assess volumes and gas composition.
Beach Energy CEO Matt Kay said the company is very encouraged by the results of the testing and looks forward to continuing operations in the Otway Basin.
The South Australian Government contributed $6 million in a PACE grant which supported the drilling of the well.
Shares in Beach Energy (ASX:BPT) closed 3.33 per cent lower yesterday at $1.30.