Santos said it was successful at its Moomba-194 well in the Cooper shale natural gas basin in Australia. The well has been on a production test for more than a week.
The company said in a statement the well proves the region may cover more area than previously expected. The success at Moomba-194, and its location near existing production facilities, suggests the area could be on its way to commercial development.
"Santos' deep understanding of the Cooper basin, plus our access to critical infrastructure, enables us to lead the way in realizing Australia's unconventional gas potential," regional Vice President James Baulderstone said in a statement.
Australia is among the top exporters of liquefied natural gas in the world. The U.S. Energy Department's Energy Information Administration reports Australia had 110 trillion cubic feet of proven natural gas reserves as of 2011.