Beach Energy hits gas in Otway basin

Australian oil and gas explorer, Beach Energy, has made a new gas find in the onshore Otway basin in South Australia. 

Flow test results at Haselgrove-3 ST1 from the primary target Sawpit Sandstone indicate a high deliverability reservoir and provide encouragement to move towards commercialization of a large gas resource, Beach said in a statement.

The company 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, owned 100 percent by Beach, approximately eight kilometers south of Penola. Haselgrove-3 ST1 was drilled to a total measured depth of 4,331 meters and targeted the Sawpit Sandstone and shallower Pretty Hill Sandstone.

The well intersected an estimated gross gas column of 104 meters in the Sawpit Sandstone, with estimated net pay of 25.6 meters. An estimated gross gas column of 11.6 meters was also intersected in the shallower Pretty Hill Sandstone, with estimated net pay of 8.5 meters.

Early indications suggest the Sawpit Sandstone could flow at rates greater than 25 MMscfd. Preliminary gas sample analysis indicates low inert content, which should minimise gas processing requirements.

The well is currently shut-in with preparations underway for the commencement of an initial production test in late January 2018.

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