Conventional gas

December 2016 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 five-well gas appraisal and development campaign on the central flank of the Big Lake Field was completed. The campaign included one standalone appraisal well (Big Lake-134) and four development wells drilled from a single pad (Big Lake-135 to -138). The campaign aimed to expand the central development area and targeted the Patchawarra Formation, Tirrawarra Sandstone and Merrimelia Formation, with the Epsilon Formation providing a secondary target. Big Lake-137 and Big Lake-138 were the final wells of the campaign. Big Lake-137 intersected approximately 80 metres of net gas pay across a 545 metre gross section in the target zones, which was marginally below pre-drill estimates. Big Lake-138 intersected approximately 83 metres of net pay across a 463 metre gross section in the target zones, which was in-line with pre-drill estimates. All five wells of the campaign were cased and suspended as future producers.
A two-well gas development program was undertaken in the Allunga Field, which is located approximately 30 kilometres southeast of the Moomba processing facility. The Allunga structure is a four-way dip closure with reservoir properties similar to those of the neighbouring Big Lake Field. Allunga-2 and Allunga-3 were drilled from a single pad and targeted the Epsilon and Patchawarra formations. Both wells were cased and suspended as future producers, with Allunga-2 intersecting 48 metres of net pay across a 622 metre gross section, and Allunga-3 intersecting 62 metres of net pay across a 585 metre gross section. Results were in line with pre-drill estimates and support potential follow-up drilling as part of a broader field development plan.
Queensland Gas – SWQ JVs
Beach 23.2%, Santos 60.06% and operator, Origin 16.74%
A two-well gas development program was undertaken in the Galex Field, which is located approximately 10 kilometres southeast of the Ballera processing facility. The wells targeted undeveloped reserves in the Patchawarra Formation, with the Toolachee Formation providing a secondary target. Galex-4 intersected 45 metres of net pay across a 183 metre gross section. Results were in-line with pre-drill estimates and the well was cased and suspended as a future producer. Galex-5 intersected six metres of net pay across a 211 metre gross section. The well was cased and suspended as a future producer, with results broadly in-line with pre-drill estimates.
Windigo-3 was drilled as a deviated gas development well in the Windigo Field, which is located in the central region of the Cooper Basin’s south west Queensland area. The well was identified following a regional review of the Windigo and Roti fields, and targeted sands within the Patchawarra Formation as a primary objective and sands within the Epsilon Formation as a secondary objective. Windigo-3 was cased and suspended as a future Patchawarra Formation producer following intersection of 50 metres of net pay across a 243 metre gross section, with results in-line with pre-drill estimates.
Operated Exploration and Appraisal

Western Flank Gas – ex PEL 106
Beach 100%
Canunda-3 is the first well of a three-well gas exploration and appraisal campaign within Beach’s 100% owned ex PEL 106 permit area.  The Canunda Field is located on the western edge of the Patchawarra Trough, approximately 45 kilometres northwest of the Moomba processing facility.  Canunda-3 targeted liquids-rich gas within a stratigraphic trap in the Patchawarra Formation and reached total depth of 2,811 metres on 31 December 2016.  Subsequent to quarter-end, wireline evaluation of the primary Patchawarra target indicated 1.6 metres of net pay.  A drill stem test of the primary target produced liquids-rich gas at a rate of 1.9 MMscf/d on a 16/64” choke and 1,302 psig flowing pressure.  In addition, wireline evaluation of the secondary Patchawarra target indicated 1.2 metres of net pay.  A drill stem test of the secondary target produced liquids-rich gas at a rate of 1.3 MMscf/d on a 16/64” choke and 730 psig flowing pressure.  Canunda-3 was cased and suspended as a future producer, with further testing required.  Analysis of test results is expected to confirm that the primary and secondary targets of Canunda-3 represent new discoveries which are not connected to existing reservoirs within the Canunda Field.

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%)
Namur-4 was drilled as a standalone gas appraisal well in the Namur Field, which is located approximately 25 kilometres southeast of the Moomba processing facility.  The field was the first Namur Sandstone gas producing discovery in the Eromanga Basin.  Namur-4 was drilled to evaluate reservoir potential of the Patchawarra Formation, and also to assess remaining recovery within the Namur Sandstone.  The well intersected approximately 28 metres of net pay across a 221 metre gross section in the Namur Sandstone, and approximately 45 metres of net pay across a 214 metre gross section in the Patchawarra Formation.  Subsequent to quarter-end, Namur-4 was cased and suspended as a future Patchawarra Formation producer.  Analysis of results is currently underway to gauge potential for production from the other reservoirs, and to assess future drilling potential in the field.

Queensland Gas
Beach 23.2%, Santos 60.06% and operator, Origin 16.74%
The Dunadoo East-1 near-field gas exploration well is located within the Coolah Complex, approximately 40 kilometres north of the Ballera processing facility. The well was drilled to test a potential continuation of regional sand trends following recent successful drilling in the Dunadoo, Coolah and Durham Downs fields. Dunadoo East-1 was plugged and abandoned due to lack of commercial pay.
Roti South-1 was drilled as a standalone gas appraisal well to the south of the Roti and Roti West fields. The well is located southeast of the Windigo Field in the central region of the Cooper Basin’s south west Queensland area, and was identified following a review of the Roti and Windigo fields. Roti South-1 targeted sands within the lower Patchawarra Formation, with upper Patchawarra sands and the Epsilon Formation providing secondary targets. The well was cased and suspended as a future producer following intersection of approximately 36 metres of net pay across a 193 metre gross section within the target zone. Results were in-line with pre-drill estimates and provide encouragement for follow-up development drilling on the Roti South structure.