Conventional gas

March 2017 Quarter

Non Operated Development

South Australian Gas – SACB JVs
Fixed Factor Area Joint Venture: Beach 20.21%, Santos 66.6% and operator, Origin 13.19%
A two-well in-fill gas development campaign was completed in the Toolachee Field, located approximately 70 kilometres southeast of the Moomba processing facility.  Toolachee-53 and Toolachee-54 targeted sands in the Patchawarra Formation and were drilled to accelerate production of existing reserves. 
Under balanced drilling techniques were applied, which help optimise production from low pressure reservoirs.  The campaign was successful with both wells cased and suspended as future producers, and results in-line with pre-drill estimates.  The wells are expected online in Q4 FY17.
A three-well gas development campaign was undertaken in the Kanowana Field, located approximately 40 kilometres northwest of the Moomba processing facility.  The Kanowana structure is a four-way dip closure which has been developed primarily on the western side of the field.  Recent 3D seismic data interpretation indicated the structure may extend further east than original 2D data suggested, thereby offering development potential.  The wells were drilled via a single pad and targeted gas and gas liquids in the Patchawarra Formation and oil in the Tirrawarra Sandstone.  The campaign was successful with all wells cased and suspended as future producers, and results in-line with pre-drill estimates.  The wells are expected online in Q4 FY17.
 
Operated Exploration and Appraisal

Western Flank Gas – ex PEL 106, ex PEL 107, ex PEL 91
Beach 100%
Beach completed its FY17 operated gas exploration and appraisal campaign.  The campaign delivered three gas discoveries from four wells, including two during the past quarter.  All discoveries indicate potential for high liquids content and estimated initial flow rates ranging from 3 MMscfd to 12 MMscfd.  Crockery-1, Dandy-1 and Mokami-1 were drilled during the quarter and targeted stratigraphic traps in the Patchawarra Formation.
Crockery-1 (ex PEL 106) confirmed a southern extension of the Southwest Patchawarra play fairway and was cased and suspended as a future producer.  The result reinforces potential for further stratigraphically trapped gas discoveries within the region.
Dandy-1 (ex PEL 106) was drilled to the south of Crockery-1 and intersected gas shows in good quality reservoir sands, however was plugged and abandoned due to lack of commercial pay. 
Mokami-1 (ex PEL 91) confirmed a western extension of the Southwest Patchawarra play fairway and was cased and suspended as a future producer.  The discovery is encouraging for upcoming exploration activity in the adjacent frontier Permian Edge play fairway. 
Due to this successful campaign, planning for an expanded FY18 operated gas drilling campaign is underway, with more than twice the number of gas wells drilled in FY17 currently anticipated.
Preparations for the Spondylus 3D seismic survey in ex PEL 107 commenced.  The survey spans approximately 340 km2 and will seek to identify new prospects to test a possible southern extension of the Southwest Patchawarra play fairway.  Line preparation is expected to commence in late April 2017, with recording to be completed in July 2017.  Interpretation and identification of prospects will be undertaken during FY18. 

Non Operated Exploration and Appraisal

South Australian Gas – SACB JVs
(Fixed Factor Area Joint Venture: Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)
Strzelecki-32 was drilled as a vertical gas appraisal well in the Strzelecki Field, located approximately 45 kilometres southeast of the Moomba processing facility.  The prospect was identified following a detailed reservoir study of the Patchawarra Formation and tested a potential southwest extension of the field.  Strzelecki-32 targeted the Patchawarra Formation as a primary objective and the overlying Toolachee Formation as a secondary objective.  The well was cased and suspended as a future producer following intersection of approximately 12 metres of net pay across a
60 metre gross section in the Toolachee Formation.  No pay was encountered in the Patchawarra Formation.  Strzelecki-32 is expected online in Q1 FY18.
The Caraka-2 gas appraisal well was drilled on the northern sub-culmination of the Caraka Field, located approximately 60 kilometres southeast of the Moomba processing facility and close to the Toolachee and Strzelecki fields.  The well was drilled following a 2016 reservoir study of the Caraka Field and re-interpretation of various 3D and 2D seismic surveys from across the region.  The study identified potential for additional reserves to be accessed within the Patchawarra Formation (primary objective) and Epsilon Formation (secondary objective).
Caraka-2 was cased and suspended as a future producer.  Beach’s assessment of results indicates the well intersected approximately
15 metres of net pay across a 406 metre gross section in the Patchawarra Formation, and four metres of net pay across a 173 metre gross section in the Epsilon Formation.  These results were marginally below pre-drill estimates.  Caraka-2 is expected online in Q4 FY17.
 
Queensland Gas
Beach 23.2%, Santos 60.06% and operator, Origin 16.74%
Raffle-2 was drilled as a standalone gas appraisal well in the Raffle Field, located approximately
70 kilometres southwest of the Ballera processing facility.  The well is crestally located on the western culmination of the Raffle Field.  Raffle-2 targeted the Toolachee Formation as a primary objective and the Epsilon Formation as a secondary objective.  The well intersected three metres of net pay in the Toolachee Formation and four metres of net pay in the Callamurra Member.  Raffle-2 was cased and suspended as a future producer.
Ranger-1 is the first well of a six-well near-field gas exploration campaign in southwest Queensland.  Wells are located close to existing pipeline infrastructure, thus allowing timely connection of new discoveries.  Ranger-1 targeted gas in the Patchawarra Formation and was cased and suspended as a future producer.  Beach’s assessment of results indicates the well intersected approximately 11 metres of net pay across a 157 metre gross section.  These results were marginally below pre-drill estimates.  Ranger-1 is expected online in Q1 FY18.