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Beach Energy makes gas discovery in Otway Basin

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Oilfield Technology,

Beach Energy has announced a gas discovery at Enterprise 1 in licence VIC/P42(V) (Beach 60% and operator, O.G. Energy 40% interest) in the nearshore Victorian Otway Basin.

Enterprise 1 was spud from an onshore location, 3.5 km from Port Campbell and 8 km from the Otway Gas Plant. The well was drilled directionally using an extended reach drilling (ERD) approach to deliver a well with a 3.2 km step-out, to target a location within the offshore permit VIC/P42(V).

The well was successfully drilled to a total depth of 4974 m measured depth (MD) and encountered the primary reservoir target of the Upper Waarre Formation 89 m high to prognosis at a depth of 4594 m (MD) (2052 m vertical depth subsea). The well intersected 146 m of gas column in the Upper Waarre Formation, including 115 m of net gas pay with no gas-water contact identified. Sampling indicates a gas composition with 10% CO2 by volume.

The forward plan is to case and suspend the well as a future producer. A well test will confirm well productivity and provide data for the proposed pipeline to the Otway Gas Plant. Detailed engineering work and regulatory approvals process for the pipeline is already underway.

Estimates of potential resource size are not yet defined, with the formation evaluation programme still in progress. Beach’s preliminary assessment is that key reservoir parameters are interpreted to be in-line with pre-drill expectations.

Beach Energy Managing Director and CEO Matt Kay said he was pleased to see the Otway campaign build on its early success at Black Watch 1.

“To have our first exploration well in the Victorian Otway programme deliver a successful result is an excellent outcome for the business,” Kay said.

“This success enhances our plans to develop more supplies for the East Coast gas market. The Enterprise result also de-risks other nearby prospects, warranting their evaluation as potential future drilling candidates.”

“Our focus now moves to the upcoming offshore Victorian Otway Basin drilling campaign, which is due to commence in the March 2021 quarter. The first well drilled will be the Artisan 1 exploration well, followed by development wells in the Geographe and Thylacine fields.”

A volumetric estimate for the Enterprise discovery is expected to be completed before the release of the company’s FY21 half year results in February 2021.

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