DEVELOPMENT – COOPER AND EROMANGA BASINS
South Australian Oil – Cooper Basin JV
(Fixed Factor Area JV: Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)A four‐well oil appraisal and development campaign continued in the Merrimelia Field, located approximately 35 kilometres north of the Moomba processing facility. The campaign includes two development wells, Merrimelia‐65 and Merrimelia‐66. Merrimelia‐65 was drilled to develop additional Birkhead Formation reserves on the southwest flank of the field. The well intersected 7.7 metres of net oil pay in the target zone and was cased and suspended as a future producer. Merrimelia‐66 is a lateral well on the southeast flank of the field targeting the Murta Formation. The well spudded on 30 September 2017 and is drilling ahead.
Queensland Gas – Cooper Basin JV
(Southwest Queensland JV: Beach 23.2%, Santos 60.06% and operator, Origin 16.74%)A two‐well gas development campaign was successfully completed in the Roti Field, located approximately 35 kilometres east of the Ballera processing facility. The campaign follows successful drilling in the Roti South and Windigo fields in 2016 and subsequent mapping using updated depth conversions. Roti‐5 and Roti‐6 are located in the central section of the field and targeted gas reserves in the Epsilon and Patchawarra formations. Both wells were cased and suspended as future producers. Roti‐5 intersected 8.5 metres of net gas pay in a 92 metre gross section of the Patchawarra Formation. Roti‐6 intersected 2.4 metres of net gas pay in a 25 metre gross section of the Epsilon Formation, and 9.6 metres of net gas pay in an 82 metre gross section of the Patchawarra Formation.
EXPLORATION AND APPRAISAL – COOPER AND EROMANGA BASINS
Western Flank Oil – ex PEL 91
(Beach 100%)Beach continued its FY18 operated Birkhead oil exploration and appraisal campaign. The Birkhead Formation is a proven oil reservoir in Western Flank fields, however has not been subjected to playwide, focused exploration and appraisal. The FY18 program aims to establish commerciality and size of existing discoveries, appraise field extensions, discover new accumulations and design cost effective development programs.
The second vertical well of the campaign, Goldsmith‐1, was drilled four kilometres north of Kangaroo‐1 to test a potential northern extension of the Kangaroo Field. Oil shows were intersected in the target interval, however low reservoir quality resulted in side‐tracking of the well approximately 400 metres west of the original target. The side‐track did not intersect reservoir in the target interval and Goldsmith‐1 was subsequently plugged and abandoned.
The first two vertical exploration wells of the FY18 Birkhead campaign, Goldsmith‐1 and Donington‐1, were designed to test the true up‐side of the Kangaroo Field. Based on the results, future drilling will be focused on the lower risk area in closer proximity to the Kangaroo Field. This will be appraised and developed along with existing Birkhead oil discoveries in the Stunsail, Pennington, and Stanleys fields. Horizontal development wells are planned for H2 FY18 and will commence upon completion of Beach’s operated gas exploration campaign.
Western Flank Gas – ex PEL 92
(Beach 75% and operator, Cooper Energy 25%)Beach commenced its FY18 operated gas exploration and appraisal campaign, which is focused on the Southwest Patchawarra (SWP) and Permian Edge (PE) play fairways. Both fairways contain combination structural and stratigraphically trapped conventional gas targets in the Patchawarra Formation.
The first exploration well of the campaign, Louth‐1, is located in ex PEL 92, approximately 5 kilometres west of the recent Mokami discovery. The well was drilled to test the most westerly extension of the PE play fairway, which is a relatively underexplored western pinch‐out of the
Patchawarra Formation. Despite encouraging gas shows, reservoir quality was deemed insufficient for commerciality and the well was plugged and abandoned. Results will be analysed to confirm optimal locations for upcoming wells.
Western Flank Gas – PRL 26
(Beach 100%)The second gas well of the FY18 operated exploration and appraisal campaign, Lowry‐1, is located in the SWP play fairway approximately two kilometres northwest of the Middleton processing facility. The well is targeting stratigraphically trapped gas within the sands of the Patchawarra Formation. Lowry‐1 spudded on 28 September 2017 and at month‐end was drilling ahead at 929 metres.
South Australian Oil – Cooper Basin JV
(Fixed Factor Area JV: Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)The four‐well oil appraisal and development campaign in the Merrimelia Field includes two appraisal wells, Merrimelia‐63 and Merrimelia‐67. Merrimelia‐63 tested reservoir limits of the Birkhead Formation along the northeast flank of the field as a primary objective, and the Mackunda and Murta formations as secondary objectives. The well intersected 1.2 metres of net oil pay in the primary target and was cased and suspended as a future producer. Merrimelia‐67 was drilled on the southwest flank of the field and targeted the Murta Formation as a primary objective with secondary targets in the Mackunda, Birkhead, McKinlay and Namur reservoirs. The well intersected 3.3 metres of net oil pay in the primary target and was cased and suspended as a future producer.
Queensland Gas – Cooper Basin JV
(Southwest Queensland JV: Beach 23.2%, Santos 60.06% and operator, Origin 16.74%)A four‐well gas appraisal and development campaign commenced on the Costa / Judga Complex, located approximately 20 kilometres east of the Ballera processing facility. The first appraisal well of the campaign, Judga‐4, was drilled to test the northern extent of the Judga Field and targeted the Patchawarra Formation as a primary objective and the Toolachee and Epsilon formations as secondary objectives. The well intersected 11 metres of net gas pay in a 229 metre gross section of the primary target. Judga‐4 was cased and suspended as a future producer.
EXPLORATION AND APPRAISAL – OTWAY BASIN
South Australian Gas – PPL 62
(Beach 100%)Beach commenced drilling operations in the onshore Otway Basin with spudding of Haselgrove‐3, a conventional gas exploration well. Haselgrove‐3 is located on state forestry land approximately eight kilometres south of Penola. The well is proximal to Beach’s Katnook gas processing facility and pipeline network, and the SEA Gas transmission system.
Haselgrove‐3 is targeting a 34 Bcf1 conventional gas and gas liquids prospect in the Pretty Hill and Sawpit sandstones. The well will not require fracture stimulation. At month‐end, Haselgrove‐3 was drilling ahead at 798 metres, with a total vertical depth target of approximately 3,900 metres. Drilling of Haselgrove‐3 is being supported by the South Australian Government through the Plan for Accelerating Exploration gas grant scheme, which aims to bring new gas to market within three years. Under the terms of the $6 million grant, if a discovery at Haselgrove‐3 is deemed to be commercial, Beach will enter bilateral negotiations with prospective South Australian customers for supply of gas at prevailing market terms. For further information, refer to the announcement of 17 March 2017.
For more information, please visit:
http://www.beachenergy.com.au 
