BEACH ENERGY LIMITED For Immediate Release - 3 December 2014
Ref. #091/14
ASX Ltd/SGX Singapore Exchange Ltd Companies Announcement Office Electronic Lodgement System
Highlights: 13 wells drilled at a success rate of 85%
November 2014 Bauer field pad well development continuing to produce results above expectations, with 2P
reserve increases expected
SACB JV close space infill drilling program near completion
DEVELOPMENT
Australia - Cooper and Eromanga BasinsOperated
PEL 91(Beach 40%, Drillsearch 60%)
A six well development campaign is near completion at the Bauer field. This campaign is the first phase of a full field development plan aimed to support past record levels of production through the development of the highly productive Namur Sandstone reservoir. The current six well drilling campaign comprises four deviated wells drilled from a single pad location and two vertical wells.
The Bauer pad drilling campaign involves the Bauer-16 to -19 wells. This pad drilling approach involves drilling wells in close proximity without the need for rig re-mobilisation. A 'sideways walk' of the rig achieves savings in terms of footprint, drilling time and costs. As an example, the sideways rig walk from Bauer-16 to -17 was completed in two hours, a record for the Cooper Basin. Consequently, the full four well pad program is expected to be completed within 30 days.
The first of the four pad wells, Bauer-19, intersected the top of the Namur reservoir 4.7 metres high to prognosis, with 8.7 metres of net oil pay, with an additional 4.0 metre oil bearing gross interval of overlying McKinlay member. The second of the pad wells, Bauer-16, intersected the top of the Namur reservoir 1.0 metre low to prognosis, with 3.5 metres of net oil pay and an additional 4.0 metre oil bearing gross interval of overlying McKinlay member. This was followed by Bauer-17, which intersected the top of the Namur 3.5 metres high to prognosis, with 5.4 metres of net oil pay and a 4.2 metre oil bearing gross interval of overlying McKinlay member.
Monthly Drilling Report - November 2014
Bauer-16, -17 and -19 were cased and suspended as future oil producers. Bauer-18 is the final pad well and is expected to reach total depth this weekend.
The first of the two vertical wells, Bauer-14, was drilled in October 2014 in the central part of the field and intersected the top Namur reservoir 0.6 metres low to prognosis. The well was cased and suspended as a future McKinlay oil producer based on a 4.1 metre gross oil bearing interval. The well was perforated in the McKinlay member and flow tested at ~250 barrels of oil per day ("bopd") over a four hour period. The Namur reservoir was observed to be swept due to offset production. The second vertical well, Bauer-15, was drilled in the northern part of the field in November and intersected the top of the Namur reservoir 2.2 metres high to prognosis, with 5.1 metres of net oil pay. Flow testing over a half hour period produced a flow rate of ~5,000 bopd from the Namur Sandstone.
Non-operated
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 has primarily focused on close space infill drilling at the Cowralli, Moomba North and Big Lake fields. The infill drilling campaign is targeting the conversion of undeveloped reserves to developed reserves to enable ramp-up of gas production in 2015. The campaign for calendar year
2014 is near completion and the operator is expected to provide the production ramp-up profile in
December 2014.
During November, drilling focused on five wells in the Big Lake field. Big Lake-121, -122 and -123 were drilled on a single pad in the central area of the field. Big Lake-131 and -132 are standalone wells in the south-west sector of the field. Positive results from these wells will de-risk future drilling in the area. During the month, Big Lake-121, -122 and -131 were cased and suspended as future Permian gas producers and Big Lake-123 and -132 are currently drilling ahead.
The Nephrite South field is located north-west of Moomba and towards the western boundary of the SACB JV permit area. During November, Nephrite South-10, the first of a four well pad program, was spudded and is currently drilling ahead. Development drilling in the Nephrite South field is consistent with the joint venture's objective for more geographically widespread drilling relative to the close space infill drilling conducted near Moomba during 2013 and 2014. Up to four development wells are planned for Nephrite South in calendar year 2015.
(Beach 23.2%, Santos 60.06% and operator, Origin 16.5%, Australia Pacific LNG Ltd 0.24%)
The Durham Downs North-4 development well was drilled on a small culmination in the north-west sector of the field. The well confirmed gas pay in the Toolachee and Patchawarra Formations and as
a result was cased and suspended.
Page 2 of 6
Monthly Drilling Report - November 2014
EXPLORATION and APPRAISAL
Australia - Cooper and Eromanga BasinsOperated
PEL 106(Beach 50%, Drillsearch 50%)
A four well exploration and appraisal campaign is currently underway, targeting gas and gas liquids in the Patchawarra Formation and Tirrawarra Sandstone. The program is proximal to the existing Canunda field and gas pipeline to Middleton.
Canunda-2, the first well in the program, was cased and suspended in October2014. Maupertuis-1, the second well in the program, was spudded in November with oil fluorescence and moderate gas shows in the Tirrawarra Sandstone detected during drilling. The well was cased and suspended, with Beach electing not to participate. Antechamber-1 is the next well in the program and is expected to spud in December 2014.
Non-operated
SACB JV deep natural gas(Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)
The Gaschnitz-3 vertical well was cased and suspended in November after confirming log gas pay in the Toolachee, Epsilon and Patchawarra Formations and Tirrawarra Sandstone. The objective of this well is to further evaluate all unconventional lithotypes, including tight sand, shale and deep coal targets.
The rig has now moved to the Gaschnitz-2 well location, the last well in the 2014 Gaschnitz drilling campaign. Fracture stimulation of the three Gaschnitz wells across multiple lithologies is planned for
2015. Details of the fracture stimulation program are still to be agreed by the joint venture partners.
Other potential SACB JV deep natural gas activities during the 2015 calendar year (subject to joint venture approval) may include: 1. drilling, fracture stimulation and testing of one well located on a structural high within the Nappamerri Trough, targeting an interpreted 'sweet spot' for permeability and natural fracturing, and 2. completion of the fracture stimulation program at Van der Waals-1, with a possible further nine stages and subsequent flow testing (multiple lithologies / stacked targets).
(Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)
The Swan Lake-11 appraisal well was drilled in the north-east sector of the field and confirmed gas pay in the Toolachee, Epsilon and Patchawarra Formations and Tirrawarra Sandstone, and was subsequently cased and suspended. As a result, the field limit was extended and the results of this well have de-risked planned future development drilling. Development drilling in the Swan Lake field is consistent with the joint venture's objective for more geographically widespread drilling relative to the close space infill drilling conducted near Moomba during 2013 and 2014. Up to six development
wells are planned for Swan Lake in calendar year 2015.
Page 3 of 6
Monthly Drilling Report - November 2014
Queensland oil
The Tickalara-28 appraisal well (Beach 30%, Santos 70%) was spudded on 26 October 2014 with the aim of appraising the north-east area of the Tickalara field, targeting the McKinlay Formation on the down-dip flank of the field. The well encountered approximately 1.4 metres of net pay in the McKinlay Formation but was plugged and abandoned due to the result being sub-economic.
The Munro-8 appraisal well (Beach 40%, Santos 60%) was spudded during November to appraise the northern extent of the Munro field. The primary target was the Birkhead Formation, which had no evident pay on wireline logs. However, an approximate two metre net pay sand was encountered in the Mid-Namur Sandstone and the well was subsequently cased and suspended as a future Mid- Namur oil producer.
(Beach 22%, Kuwait Energy 50% and operator, Dover 28%)
The ASH-1X exploration well continued drilling ahead during November. The well is at a current depth of 3,520 metres, targeting the Alam El Bueib / Khatatba and Abu Roash "C" and "E" members.
Al Jahraa-3 testing is currently underway on the Abu Roash "C" member. The appraisal well intersected seven metres of net pay in the Abu Roash "C" member and this zone was tested for 11
hours at a rate equivalent to 1,385 barrels of oil per day.
Monthly Drilling Report - Period ending 06:00, 1 December 2014
Well | Participants | Progress and summary | Primary targets |
Bauer-15
Cooper Basin operated
BPT* 40.00% Drilling this m onth: 1,321 m etres McKinlay Mem ber
PPL 253 (ex PEL 91) Oil developm ent Cooper, SA
DLS 60.00% Current depth: Status :
1,721 m etres (total depth)
Cas ed and s us pended as a future McKinlay Mem ber and
Nam ur Sands tone oil producer
Nam ur Sands tone
Bauer-16 (Pad) | BPT* 40.00% DLS 60.00% | Drilling this m onth: 1,515 m etres Current depth: 1,515 m etres (total depth) Status : Cas ed and s us pended as a future McKinlay Mem ber and Nam ur Sands tone oil producer | McKinlay Mem ber Nam ur Sands tone |
PPL 253 (ex PEL 91) Oil developm ent Cooper, SA | BPT* 40.00% DLS 60.00% | Drilling this m onth: 1,515 m etres Current depth: 1,515 m etres (total depth) Status : Cas ed and s us pended as a future McKinlay Mem ber and Nam ur Sands tone oil producer | McKinlay Mem ber Nam ur Sands tone |
Bauer-17 (Pad) | BPT* 40.00% DLS 60.00% | Drilling this m onth: 1,583 m etres Current depth: 1,583 m etres (total depth) Status : Cas ed and s us pended as a future McKinlay Mem ber and Nam ur Sands tone oil producer | McKinlay Mem ber Nam ur Sands tone |
PPL 253 (ex PEL 91) Oil developm ent Cooper, SA | BPT* 40.00% DLS 60.00% | Drilling this m onth: 1,583 m etres Current depth: 1,583 m etres (total depth) Status : Cas ed and s us pended as a future McKinlay Mem ber and Nam ur Sands tone oil producer | McKinlay Mem ber Nam ur Sands tone |
Bauer-18 (Pad) | BPT* 40.00% DLS 60.00% | Drilling this m onth: 646 m etres Current depth: 646 m etres Status : Drilling ahead | McKinlay Mem ber Nam ur Sands tone |
PPL 253 (ex PEL 91) Oil developm ent Cooper, SA | BPT* 40.00% DLS 60.00% | Drilling this m onth: 646 m etres Current depth: 646 m etres Status : Drilling ahead | McKinlay Mem ber Nam ur Sands tone |
Bauer-19 (Pad) | BPT* 40.00% DLS 60.00% | Drilling this m onth: 1,443 m etres Current depth: 1,443 m etres (total depth) Status : Cas ed and s us pended as a future McKinlay Mem ber and Nam ur Sands tone oil producer | McKinlay Mem ber Nam ur Sands tone |
PPL 253 (ex PEL 91) Oil developm ent Cooper, SA | BPT* 40.00% DLS 60.00% | Drilling this m onth: 1,443 m etres Current depth: 1,443 m etres (total depth) Status : Cas ed and s us pended as a future McKinlay Mem ber and Nam ur Sands tone oil producer | McKinlay Mem ber Nam ur Sands tone |
Maupertuis-1 | BPT* 50.00% DLS 50.00% | Drilling this m onth: 2,814 m etres Current depth: 2,814 m etres (total depth) Status : Cas ed and s us pended (DLS to s ole ris k) | Patchawarra Form ation Tirrawarra Sands tone |
PPL 257 (ex PEL 106) Gas apprais al C/E Bas in, SA | BPT* 50.00% DLS 50.00% | Drilling this m onth: 2,814 m etres Current depth: 2,814 m etres (total depth) Status : Cas ed and s us pended (DLS to s ole ris k) | Patchawarra Form ation Tirrawarra Sands tone |
Page 4 of 6
Monthly Drilling Report - November 2014
Monthly Drilling Report - Period ending 06:00, 1 December 2014
Well | Participants | Progress and summary | Primary targets |
Cooper Basin non-operated
Big Lake-121 | BPT | 20.21% | Drilling this m onth: | 229 m etres | Patchawarra Form ation |
PPL 11 | STO* | 66.60% | Current depth: | 3,175 m etres (total depth) | Tirrawarra Sands tone |
Gas developm ent C/E Bas in, SA | ORG | 13.19% | Status : | Cas ed and s us pended as a future Perm ian Gas producer | |
Big Lake-122 | BPT | 20.21% | Drilling this m onth: | 3,132 m etres | Patchawarra Form ation |
PPL 11 | STO* | 66.60% | Current depth: | 3,132 m etres (total depth) | Tirrawarra Sands tone |
Gas developm ent C/E Bas in, SA | ORG | 13.19% | Status : | Cas ed and s us pended as a future Perm ian Gas producer | Merrim elia Form ation |
Big Lake-123 | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,215 m etres Current depth: 2,215 m etres Status : Drilling ahead | Patchawarra Form ation Tirrawarra Sands tone Merrim elia Form ation |
PPL 11 Gas developm ent C/E Bas in, SA | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,215 m etres Current depth: 2,215 m etres Status : Drilling ahead | Patchawarra Form ation Tirrawarra Sands tone Merrim elia Form ation |
Big Lake-131 | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,340 m etres Current depth: 3,130 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Patchawarra Form ation Tirrawarra Sands tone |
PPL 11 Gas developm ent C/E Bas in, SA | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,340 m etres Current depth: 3,130 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Patchawarra Form ation Tirrawarra Sands tone |
Big Lake-132 | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,912 m etres Current depth: 2,912 m etres Status : Drilling ahead | Patchawarra Form ation Tirrawarra Sands tone Merrim elia Form ation |
PPL 11 Gas developm ent C/E Bas in, SA | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,912 m etres Current depth: 2,912 m etres Status : Drilling ahead | Patchawarra Form ation Tirrawarra Sands tone Merrim elia Form ation |
Swan Lake-11 | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 1,544 m etres Current depth: 3,120 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Patchawarra Form ation Tirrawarra Sands tone |
PPL 101 Gas apprais al C/E Bas in, SA | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 1,544 m etres Current depth: 3,120 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Patchawarra Form ation Tirrawarra Sands tone |
Nephrite South-10 | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,454 m etres Current depth: 2,454 m etres Status : Drilling ahead | Patchawarra Form ation |
PPL 101 Gas developm ent C/E Bas in, SA | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 2,454 m etres Current depth: 2,454 m etres Status : Drilling ahead | Patchawarra Form ation |
Gaschnitz-3 | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 133 m etres Current depth: 3,939 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Toolachee Form ation Eps ilon Form ation Patchawarra Form ation Tirrawarra Sands tone |
PPL 101 Unconventional C/E Bas in, SA | BPT 20.21% STO* 66.60% ORG 13.19% | Drilling this m onth: 133 m etres Current depth: 3,939 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Toolachee Form ation Eps ilon Form ation Patchawarra Form ation Tirrawarra Sands tone |
Durham Downs Nth-4 | BPT 23.20% STO* 60.06% ORG 16.50% APL 0.24% | Drilling this m onth: 586 m etres Current depth: 2,660 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Toolachee Form ation Patchawarra Form ation |
PL 80 Gas developm ent C/E Bas in, QLD | BPT 23.20% STO* 60.06% ORG 16.50% APL 0.24% | Drilling this m onth: 586 m etres Current depth: 2,660 m etres (total depth) Status : Cas ed and s us pended as a future Perm ian Gas producer | Toolachee Form ation Patchawarra Form ation |
Tickalara-28 | BPT 30.00% STO* 70.00% | Drilling this m onth: 0 m etres Current depth: 1,554 m etres (total depth) Status : Plugged and abandoned | McKinlay Mem ber |
PL 34 Oil apprais al C/E Bas in, QLD | BPT 30.00% STO* 70.00% | Drilling this m onth: 0 m etres Current depth: 1,554 m etres (total depth) Status : Plugged and abandoned | McKinlay Mem ber |
Munro-8 | BPT 40.00% STO* 60.00% | Drilling this m onth: 1,515 m etres Current depth: 1,515 m etres (total depth) Status : Cas ed and s us pended as a future Birkhead Form ation oil producer | Bas al Birkhead |
PL 55 Oil apprais al C/E Bas in, QLD | BPT 40.00% STO* 60.00% | Drilling this m onth: 1,515 m etres Current depth: 1,515 m etres (total depth) Status : Cas ed and s us pended as a future Birkhead Form ation oil producer | Bas al Birkhead |
International | |||
ASH-1X | BPT 22.00% KEE* 50.00% DOV 28.00% | Drilling this m onth: 2,823 m etres Current depth: 3,520 m etres Status : Drilling ahead | Alam El Bueib / Khatatba Abu Roas h C, E |
Abu Sennan Oil exploration Egypt, Wes tern Des ert | BPT 22.00% KEE* 50.00% DOV 28.00% | Drilling this m onth: 2,823 m etres Current depth: 3,520 m etres Status : Drilling ahead | Alam El Bueib / Khatatba Abu Roas h C, E |
Al Jahraa-3 | BPT 22.00% KEE* 50.00% DOV 28.00% | Drilling this m onth: 664 m etres Current depth: 3,321 m etres (total depth) Status : Press ure testing | Abu Roas h C, D, E |
Abu Sennan Oil Appraisal Egypt, Wes tern Des ert | BPT 22.00% KEE* 50.00% DOV 28.00% | Drilling this m onth: 664 m etres Current depth: 3,321 m etres (total depth) Status : Press ure testing | Abu Roas h C, D, E |
( * ) Operator
ORG Origin Energy Ltd DOV Dover Investments Ltd
BPT Beach Energy Ltd STO Santos Ltd
DLS Drillsearch Energy Ltd APL A ustralia Pacif ic LNG Ltd
KEE Kuw ait Energy Egypt Ltd
Page 5 of 6
Monthly Drilling Report - November 2014
South
Australia
Queensland
COOPER BASIN
!( Durham Downs North-4
Bauer-15,-16,-17,-18,-19
Nephrite South-10
!(!(!(!(!( !( Gaschnitz-3
!(
!( !(
Maupertius-1
Swan Lake-11
0 20 40 60 80
Kilometres
Big Lake-121,-122,-123,-131,-132 !(!( !(!(!(
!( Tickalara-28
!( Munro-8
!( Oil well
!( Gas well
Beach operated permits
SACB and SWQ JVs permits
Beach non-operated permits
CE14-0193
NSW
COOPER BASIN WELLS NOVEMBER 2014
Badr El Din 05
Badr El Din 04
Badr El
Abu El Gharadig NE
Sheiba 18 1
EGYPT
Badr El Din 01
Abu El Gharadig
Din 11
Westn Desert 33
BW 1
Al Jahraa-3
Abo Senan
Gpt
Southwest
GPT
GPZZ GPY
Abu Sennan
ASH-1X
Westn Desert
33/15
ABU SENNAN
Baraka NE
Oil well
0 10 20
30 km
El Diyur
West
Beach Energy development lease
Beach Energy permit
Oil field/pipeline
Gas field/pipeline
Neil Gibbins
Chief Operating Officer
For more information, contact the following on +61 8 8338 2833
CorporateNeil Gibbins Chief Operating Officer
Investor Relations
Chris Jamieson General Manager Investor Relations
Derek Piper Investor Relations Manager
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