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Beach Energy Limited’s monthly drilling report - December 2014

Published by
Oilfield Technology,

Australia - Cooper and Eromanga Basins


PRLs 151 to 172 (formerly PEL 91)

(Beach 40%, Drillsearch 60%)

The last well of the six-well oil development campaign in the Bauer field was completed in December (Bauer-18). This campaign is part of a broader full field development plan aimed to support past record levels of production through the development of the highly productive Namur Sandstone reservoir. The results of the campaign exceeded Beach's expectations, with 2P reserve increases expected.

Bauer-18 intersected the target top Namur Sandstone 0.7m high to prognosis, with 6.6m of net oil pay. An additional 4.2m oil bearing gross interval of overlying McKinlay member was also intersected. The well was cased and suspended as a future Namur Sandstone oil producer.

The six recently drilled Bauer development wells are all expected to be online in Q3 FY15.

The Hanson-2 oil development well was spudded on 29 December and reached total depth subsequent to month-end. The well is currently being evaluated with initial indications of an eight-metre gross oil column in the McKinlay Member and Namur Sandstone reservoirs.


South Australian Gas

(Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)

During calendar years 2013 and 2014, the gas development program on the South Australian side of the Cooper Basin primarily focused on close space infill drilling at the Cowralli, Moomba North and Big Lake fields. This infill drilling campaign targeted conversion of undeveloped reserves to developed reserves, with the expectation of increased gas production from 2015.

During December, three wells were drilled in the Big Lake field. Big Lake-123, the last well in the three-well pad development program for the central part of the field, was cased and suspended as a future Permian gas producer. In total, the central field program was completed over the period November 2013 to December 2014 and comprised 32 wells drilled from six pads. The final pad of three wells has been deferred to assess learnings from the adjacent pads.

Big Lake-132 and -133 are the final two wells of the three-well development program for the south- west sector of the field. Big Lake-132 was cased and suspended as a future Permian gas producer. Big Lake-133 was drilling ahead at month-end and has subsequently been cased and suspended.

The Nephrite South and Kanowana fields are located to the north-west of Moomba and the Mudera field is located to the south-east of Moomba.

Development drilling in these fields is consistent with the joint venture's current objective for more geographically widespread drilling relative to the close space infill drilling conducted near Moomba.

Nephrite South-10 was cased and suspended as a future Patchawarra Formation gas producer. The well was the first of a four-well pad program for the Nephrite South Field, located approximately 45km north-west of Moomba. Nephrite South-11, the second well of the four-well pad program, is currently being prepared for casing and suspending as a future Patchawarra Formation gas producer.

Kanowana-10 is the first of two standalone development wells on the Kanowana field, located approximately 40km north-west of Moomba. The well was cased and suspended following confirmation of gas pay of approximately 55m in the Patchawarra Formation and oil pay of approximately 28m in the Tirrawarra Sandstone.

Mudera-17 is the first well in a nine-well development program for the Coorikiana Sandstone on the Mudera, Marabooka and Strzelecki fields, located approximately 35km south-east of Moomba. The well confirmed gas pay of approximately 10m in the Coorikiana Sandstone and was cased and suspended.

SACB JV Deep Natural Gas

(Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)

Gaschnitz-2 is the last of the three-well Gaschnitz field development drilling campaign for 2014 and is currently drilling ahead at a depth of 3254m. Primary targets are the Toolachee, Epsilon and Patchawarra Formations and Tirrawarra Sandstone. Fracture stimulation of the three Gaschnitz wells across multiple lithologies is planned for this program. Details and timing of the fracture stimulation program are still to be agreed by the joint venture partners.

Exploration and Appraisal

Australia - Cooper and Eromanga Basins


PRLs 129 to 130 (formerly PEL 106)

(Beach 50%, Drillsearch 50%)

The four-well exploration and appraisal campaign, which is proximal to the existing Canunda field and gas pipeline to Middleton, was completed in December. The program targeted gas and gas liquids in the Patchawarra Formation and Tirrawarra Sandstone.

Canunda-2, the first well in the program, was cased and suspended in October 2014. Maupertuis-1, the second well in the program, was also cased and suspended but with Beach electing not to participate. Antechamber-1 and Danville-1 were drilled in December, with the wells being plugged and abandoned after failing to intersect commercial hydrocarbons.


Queensland Oil

The Tennaperra-4 appraisal well (Beach 30%, Santos 70%) was drilled to appraise the northern area of the Tennaperra field and intersected 5.4 metres of net pay in the Birkhead Formation and 3.2 metres in the Namur Sandstone. The well was cased and suspended as a future oil producer.

Egypt - Abu Sennan Concession

(Beach 22%, Kuwait Energy 50% and operator, Dover 28%)

The ASH-1X ST1 oil exploration well is drilling ahead at a depth of 3270m subsequent to month-end. The well is primarily targeting the Alam El Bueib and Khatatba Formations.

Testing was completed at the Al Jahraa-3 oil appraisal well, with the well cased and completed as an Abu Roash "C" member oil producer. A cased hole test at a depth of 2953m to 2961m was conducted over an 11 hour period. Over this period the well flowed at a maximum recorded rate of 1385 boe/d on a 128/64" choke.

The Al Jahraa-4 oil appraisal well, located approximately 3300m south-east from Al Jahraa-3, was spudded on 23 December and is currently drilling ahead. The well is targeting the Abu Roash "C", "D" and "E" members.

Adapted from press release by Joe Green

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