Beach Energy discovers new gas field in Australia's Otway basin


ADELAIDE -- Beach Energy Ltd. has announced a new gas field discovery at Haselgrove-3 ST1 in the onshore Otway basin, in South Australia. Flow test results from the primary target Sawpit Sandstone indicate a high deliverability reservoir and provide encouragement to move towards commercialization of a large gas resource. Beach plans to undertake immediate follow-up testing to confirm well deliverability and assess connected volumes and gas composition.

Haselgrove-3 ST1 is located on state forestry land in PPL 62 (Beach 100%), approximately 8 km south of Penola. Haselgrove-3 ST1 was drilled as a deviated well to a total MD of 4,331 m and targeted the Sawpit Sandstone and shallower Pretty Hill Sandstone. The well intersected an estimated gross gas column of 104 m (total vertical thickness (TVT) in the Sawpit Sandstone, with estimated net pay of 25.6 m (TVT). An estimated gross gas column of 11.6 m (TVT) was also intersected in the shallow er Pretty Hill Sandstone, with estimated net pay of 8.5 m (TVT).

Initial testing of the Sawpit Sandstone was undertaken to enable preliminary assessment of well deliverability and gas composition. A cased hole test was undertaken over the 4,023-4,185-m interval and flowed gas at a rate of 25 MMscfd sustained over a 100-min. period through a 36/64-in. choke and at 2,700 psig well head pressure. Flowrates were constrained to 25 MMscfd due to the size of completion tubing (2 7/8 in.). Early indications suggest the Sawpit Sandstone could flow at rates greater than 25 MMscfd. Preliminary gas sample analysis indicates low inert content, which should minimize gas processing requirements.

The well is currently shut-in with preparations underway for commencement of an initial production test (IPT) in late January 2018. The IPT will confirm well deliverability and gas composition, and will assist field development planning. Results will be integrated with other subsurface data to enable estimation of the size of the gas resource.

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