Highlights:

  • Eastern Gas (ASX:EGA) was trading at AUD 0.16, up 19.23% during the morning Trading session on 21 August 2026.
  • Venus-2H has entered the target Macalister Lower coal seam and continues drilling towards Venus-1.
  • Drilling recorded gas readings of up to 25.4%, with readings above 8% classified as excellent under the wellsite rating system.
  • Venus-2H is approximately 60 metres from Venus-1 at a measured depth of about 860 metres.
  • The integrated Venus-2H/Venus-1 system will move towards dewatering and flow testing after drilling completion.

Eastern Gas Corporation Limited (ASX:EGA) has provided an operational update on its Venus-2H horizontal appraisal well at the 100%-owned Project Venus in Queensland’s Surat Basin, reporting that drilling has entered the target Macalister Lower coal seam.

The company said Venus-2H is continuing towards its planned intersection with the existing Venus-1 vertical wellbore, with drilling activities progressing through the target coal interval.

Eastern Gas was trading at AUD 0.16, up 19.23% during the morning trading session on 21 August 2026. The company’s shares remain down 29.55% over the past year.

Venus-2H Enters Target Coal Seam

Eastern Gas confirmed that Venus-2H has reached the Macalister Lower coal seam following the setting and cementing of the 7-inch casing.

Since entering the target coal, drilling has encountered intervals containing up to 100% coal cuttings, along with multiple gas shows.

Total gas readings reached up to 25.4%, with the company noting that readings above 8% are classified as excellent under the wellsite classification system used for the drilling program.

Eastern Gas stated that the gas readings represent Hydrocarbons released from coal cuttings during drilling and detected through surface gas-monitoring equipment.

The company said these observations confirm high levels of gas saturation within the target coal along the Venus-2H well trajectory.

Drilling Progresses Towards Venus-1 Intersection

Venus-2H is currently at a measured depth of approximately 860 metres and is estimated to be around 60 metres from the Venus-1 vertical wellbore.

Drilling is continuing with a downhole ranging tool to determine the relative position of Venus-2H compared with the steel casing in Venus-1.

The ranging technology is being used to guide the final drilling section towards the planned intersection point.

Once the Venus-1 intersection is achieved, drilling will continue through the target coal seam to complete the planned 1,000-metre horizontal section.

Flow Testing Planned After Well Completion

Following completion of drilling activities, the integrated Venus-2H and Venus-1 well system will be prepared for dewatering and flow testing.

The planned testing program will assess several performance measures, including:

  • Water production.
  • Reservoir pressure response.
  • Gas desorption.
  • Gas flow.
  • Overall productivity of the target coal.

Eastern Gas said further updates will be provided as key operational milestones are reached, including completion of the horizontal section, commencement of dewatering and flow testing, and material operational results.

Management Highlights Progress at Project Venus

Eastern Gas Managing Director David Spring said the drilling results confirmed that Venus-2H had entered the target Macalister Lower coal seam on its planned path towards Venus-1 and the planned 1,000-metre horizontal section.

Mr Spring said the company had encountered intervals containing up to 100% coal cuttings and multiple gas shows classified as excellent under the wellsite rating system.

He noted that the results represent drilling indications rather than flow test outcomes, with future productivity to be assessed through the planned dewatering and flow-testing program.

Mr Spring said the immediate focus remains on completing ranging operations, drilling the final section required for the Venus-1 intersection and completing the planned Horizontal Well path.

Project Venus Gas Potential

Eastern Gas is focused on Natural Gas exploration and development activities across Australia’s east coast markets.

The company’s portfolio includes two prospective tenements in Queensland’s Surat Basin and Cooper Basin.

Project Venus is located within the Walloon coal seam gas fairway of the Surat Basin.

The company’s disclosed Project Venus contingent gas resource estimates include 1C of 87.7 PJ, 2C of 130.3 PJ and 3C of 157.9 PJ, with remaining prospective gas resources of 536 PJ on a best estimate basis.

Eastern Gas noted that contingent resources are not reserves and further appraisal, production testing and development activities are required to determine whether resources can be commercially recovered.

Investor Takeaway

Eastern Gas’ latest Venus-2H update marks progress through the appraisal phase of its Project Venus development program, with drilling now within the target Macalister Lower coal seam and approaching the planned Venus-1 intersection.

The next key milestones will involve completing the horizontal drilling section, commencing dewatering and flow testing, and assessing productivity from the integrated Venus-2H/Venus-1 system.

Investors may continue to monitor operational progress and future flow-test results as Eastern Gas advances its Surat Basin gas project.