Beach Energy Limited
(ASX:BPT) and its equal joint venture partner Drillsearch Energy Limited
(ASX:DLS) have produced first gas from the Middleton gas production facility in South Australia.
The gas is now flowing to the Moonanga Tie-In Point through a flexible pipe and will be sold to the South Australian Cooper Basin Joint Venture.
The JV partners include Santos Limited
(ASX:STO), Origin Energy Limited
(ASX:ORG) and Delhi Petroleum who have agreed to buy a minimum of three billion cubic feet of raw gas.
Beach has also started a five-well gas exploration drilling campaign in the surrounding region to establish drilling wells connecting to the Middleton facility.
In the 2011 financial year Beach Energy booked a net loss of $97.5 million.
