Australia: Beach Energy Updates on July Drilling Operations

Beach Energy of Australia has released its monthly drilling report for July 2013.

Cooper Basin Deep Onshore Gas Project

The vertical exploration campaign continued in ATP 855 (Beach Energy) 46.9% and operator, Icon Energy Ltd 35.1%, Chevron Australia Exploration 18%, with Hervey-1 and Keppel-1. Hervey-1 was cased and suspended after intersecting more than 800 metres of the Patchawarra Formation and reaching total depth of 4,266 metres. Keppel-1 was drilled to approximately 3,900 metres before drilling was suspended due to elevated gas in the drilling mud. Significant gas influx within the well appears to be the result of high pressure gas from within the target zone. Beach has taken the necessary steps to make the well safe and is considering the options to recommence drilling operations at Keppel-1.

Drilling in PEL 218 (Beach 70% and operator, Chevron 30%) recommenced on 3 August with Rapid-1, a vertical exploration well, located in the western part of the permit. Rapid-1 is currently setting surface casing at 1,099 metres.

Cooper Basin Oil and Gas Exploration and Development

As a result of a Saxon rig incident (unrelated to any Beach operations), a number of Saxon rigs were shut down for most of July. Drilling operations recommenced in Cowralli-17 and -27, Okotoko West- 3 and Charo-18 toward the end of July to early August.

The gas development program in Queensland (Beach 23.2%, Santos Ltd (Santos) 60.3% and operator, Origin Energy Ltd (Origin) 16.5%) recommenced on 4 August with Okotoko West-3, which is drilling ahead at 855 metres.

In the South Australian Cooper Basin Joint Venture gas development (Beach 20.21%, Santos 66.6% and operator, Origin 13.19%), Cowralli-27 was spudded on 22 June and has drilled to a depth of 3,421 metres. Cowralli-17 was spudded on 29 July and is drilling ahead at 1,941 metres. An unconventional gas exploration well, Langmuir-1 was also spudded in July and is currently drilling ahead at 1,710 metres.

In the South Australian Cooper Basin oil development program (Beach 20%, Santos 55% and operator, Origin 25%), Cook-24 was cased and suspended as a future Hutton oil producer, while Cook-25 was plugged and abandoned. Cook-27 is currently drilling 8-1/2″ directional hole in the Birkhead formation at a depth of 1,911 metres.

Drilling in the Charo field (Beach 20.21%, Santos 66.6% and operator, Origin 13.19%) recommenced on 30 July with the Charo-18 oil appraisal well, which is currently drilling ahead at 1,813 metres.