Eastern Gas Completes Venus-2H Drill and Eyes Flow Testing From Mid-October

Venus-2H drilling operations complete as EGA prepares for flow testing

Eastern Gas Corporation (ASX: EGA) has confirmed that drilling operations and demobilisation at the Venus-2H horizontal appraisal well are complete, with the final drilling equipment departing the well site on 1 September 2026. The well forms part of the company’s 100%-owned Project Venus, located in Queensland’s Surat Basin.

With the drilling phase wrapped up, the company’s focus now shifts to the next critical step: dewatering and flow testing, planned to commence mid-October 2026, subject to final confirmation and operational readiness.

What the drill delivered — key results from Venus-2H

The Venus-2H well reached a total depth of 1,450 metres measured depth and successfully intersected the existing Venus-1 vertical wellbore at approximately 927 metres measured depth. The production wellbore contains a cumulative 445 metres of interpreted net Macalister Lower coal.

Repeated gas shows were recorded across the target coal intervals, with a peak total gas reading of 42.3% noted. One important clarification the company makes explicit: these readings represent hydrocarbons released during drilling and are not gas flow rates or a measure of future well productivity. The planned testing program will assess actual production performance.

Key drilling metrics at a glance:

• Total depth: 1,450m MD
• Intersection with Venus-1: approximately 927m MD
• Interpreted net target coal: 445m cumulative
• Peak gas show: 42.3%

Understanding CSG dewatering — why this process is the gateway to gas production

Coal seam gas (CSG) is natural gas trapped within coal seams by water pressure. Before that gas can flow to surface, the water must be removed first, reducing reservoir pressure until the gas desorbs from the coal and begins to migrate toward the wellbore. The process moves through a defined sequence: water production, then pressure reduction, then gas desorption, and ultimately gas breakthrough and flow.

The integrated Venus-2H/Venus-1 system is designed to make this process more efficient. The horizontal wellbore significantly increases the contact area with the Macalister Lower coal seams. Water and gas entering the Venus-2H horizontal wellbore are designed to flow through the connection with Venus-1 to the surface facilities, where they can be separated and measured.

For investors, this is the phase that determines whether Project Venus can become a commercial gas asset. The flow testing results will be the first direct evidence of how the reservoir performs under production conditions, and those results will shape every appraisal and development decision that follows.

What testing will measure — and what it means for Project Venus

The dewatering and flow testing program will assess four key parameters:

1. Water production volumes
2. Reservoir pressure response
3. Timing of gas breakthrough
4. Subsequent gas flow performance

It is worth noting that gas production may take time to develop as dewatering progresses. Early observations will need to be assessed alongside results obtained over the full course of the program, so no single early data point should be read in isolation.

The results will inform Eastern Gas’s assessment of Project Venus’s commercial potential and future appraisal and development options. In terms of the resource base underpinning that assessment, the company’s Prospectus dated 5 December 2025 and Replacement Prospectus dated 12 December 2025 disclosed contingent gas resource estimates of 1C 87.7 PJ, 2C 130.3 PJ, and 3C 157.9 PJ, with remaining prospective gas resources of 536 PJ on a best estimate basis.

A mandatory caveat applies here: contingent resources are not reserves. There is no certainty that further appraisal, production testing or development activities will result in the determination of reserves, or that the resources will be commercially recoverable.

The strategic context for Project Venus extends beyond the well itself. Eastern Gas is focused on supplying east coast domestic gas markets at a time when Australia faces well-documented gas supply constraints. A successful testing outcome would position Project Venus as a potential contributor to domestic supply in one of the country’s most active CSG-producing regions.

David Spring, Managing Director

“We are looking forward to assessing how the reservoir responds as water is removed and pressure is reduced. Monitoring water production, gas breakthrough and subsequent gas flow will provide the data we need to evaluate well performance and guide our next decisions for Project Venus.”

Key dates and what to watch

• Mid-October 2026: Dewatering and flow testing planned to commence, subject to final confirmation and completion of well and surface-facility preparations
• Eastern Gas has committed to providing updates on commencement of testing and as material results become available
• The flow testing program represents the next material catalyst for Project Venus and the first direct read on reservoir production performance

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