Oil and gas company Santos has begun production at Australia’s first commercial shale gas well in the Cooper Basin.

On Friday the company began natural gas production from its Moomba-191 shale well, which is 350 metres from the existing pipeline and eight kilometres from the processing plant.

Santos vice president of Eastern Australia James Baulderstone said the connection was a significant step forward as the company unlocked the vast unconventional potential of the Cooper Basin.

“While this is the first commercial shale well, and more work will be required to unlock the areas full potential, this is clearly a landmark for Australia’s natural gas industry,” Mr Baulderstone said in a statement.

Producing commercial quantities of natural gas from the Cooper Basin’s shale rock formations would provide potential for ongoing energy security as well as valuable export revenue.

Santos said further drilling was planned for the area, including an ongoing vertical well appraisal program and Santos’ first horizontal shale well.