Conventional gas

September 2017 Quarter

Non Operated Development
 
South Australian Gas - Cooper Basin JV
FFA JV: Beach 20.21%, Santos 66.6% (operator), Origin 13.19%
 
A two-well pad development campaign was successfully completed in the Jack Lake Field, located approximately 40 kilometres northwest of the Moomba processing facility. Jack Lake-6 and Jack Lake-7 targeted stacked sand intervals within the Patchawarra Formation, with the aim to access remaining gas in place at field boundaries. The wells intersected net gas pay of approximately 40 metres and 54 metres, respectively, and were cased and suspended as future producers.
 
Queensland Gas - Cooper Basin JV
SWQ JV: Beach 23.2%, Santos 60.06% (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 followed 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 the Patchawarra Formation. Roti-6 intersected 2.4 metres of net gas pay in the Epsilon Formation and 9.6 metres of net gas pay in the Patchawarra Formation.
 
Operated Exploration and Appraisal
 
Western Flank Gas
PRL 26 (Beach 20.21%), ex PEL 92 (Beach 75%, 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 second exploration well of the campaign, Lowry-1, is located in the SWP play fairway approximately four kilometres northwest of the Middleton facility in PRL 26. The well targeted stratigraphically trapped liquids-rich gas in the sands of the Patchawarra Formation. Lowry-1 intersected 3.3 metres of net pay and was cased and suspended as a future producer. A two hour drill stem test was conducted over the interval 2,586 – 2,593 metres. The well flowed at 9.4 MMscfd on a 48/64” choke at 955 psi flowing pressure. Approximately 34 bbl of condensate was recovered at a rate of approximately 400 bopd. Analysis of test results confirms Lowry-1 as a new discovery which is not connected to nearby producing fields.

The discovery provides necessary support to progress phase 1 expansion of the Middleton gas facility from 25 MMscfd to 40 MMscfd.

The first exploration well of the campaign, Louth-1, was drilled in ex PEL 92, approximately five 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.
 
Non Operated Exploration and Appraisal
 
South Australian Gas - Cooper Basin JV
FFA JV: Beach 20.21%, Santos 66.6% (operator), Origin 13.19%
 
Koree South-2 was drilled as a standalone gas appraisal well, located approximately 50 kilometres southwest of the Moomba gas facility. The well was drilled to appraise potentially liquids-rich sands in the upper Patchawarra Formation, and to accelerate production from sands in the lower Patchawarra Formation, from which gas is currently produced at Koree South-1. Koree South-2 was cased and suspended as a future gas producer. Beach interpreted net gas pay of approximately eight metres in the upper Patchawarra sands and approximately two metres of net gas pay in the lower Patchawarra sands.
 
Queensland Gas - Cooper Basin JV
SWQ JV: Beach 23.2%, Santos 60.06% (operator), Origin 16.74%
 
The final well of a six-well near-field gas exploration campaign in southwest Queensland was successfully completed. Okotoko North-1, the final well of the campaign was located on the Jackson-Naccowlah gas trend, approximately 20 kilometres northeast of the Ballera gas facility. The near-field exploration well tested a four-way dip closure analogous to those in neighbouring producing fields, and targeted the Toolachee and Patchawarra formations. The well intersected approximately eight metres of net gas pay across the primary targets and was cased and suspended as a future producer.

Okotoko North-1 is a new gas field discovery which presents potential for further development and appraisal wells, and follow-up near-field exploration drilling.

A four-well gas campaign consisting of two appraisal and two development wells 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 the primary target and was cased and suspended.