Conventional oil

March 2017 Quarter

Non Operated - Exploration and Appraisal

Western Flank Oil
PEL 183
Beach 43%, Senex 57% and operator
A three-well oil exploration campaign commenced in the under-explored and prospective PEL 182 permit area, located approximately 25 kilometres northeast of producing fields in ex PEL 104 / 111.  Prospects are testing the extent of hydrocarbon migration to the north of the Western Flank.  The wells are targeting structural and stratigraphic plays in the Namur Sandstone (primary objective) and Birkhead and Murta formations (secondary objectives). 
Sparta-1, the first well of the campaign, intersected oil shows in the Birkhead Formation, however was plugged and abandoned due to insufficient commercial pay.  The second well of the campaign, Hoplite-1, intersected a 17 metre gross section with oil shows in the upper Birkhead Formation.  A drill stem test confirmed the presence of oil but indicated a sub-commercial flow rate.  The well was then side-tracked to target interpreted better reservoir development in the middle Birkhead Formation.  Further oil shows were intersected, however the well was plugged and abandoned due to insufficient pay.  The recovery of oil from the Birkhead Formation is encouraging for the northern extension of the Western Flank play fairway.  The final well of the campaign, Immortals-1, will be drilled in Q4 FY17.

Ex PEL 104/111
Beach 40%, Senex 60% and operator
The Spitfire-8 oil appraisal well tested a northwest extension of the Birkhead reservoir in the Spitfire Field. The prospect was identified following recent inversion of the Aquillus and Mollichuta 3D seismic surveys, which aimed to delineate the Mid-Birkhead reservoir. Spitfire-8 was cased and suspended as a future oil producer following intersection of approximately seven metres of net pay in the target zone. Results were in-line with pre-drill estimates and the well was brought online prior to quarter-end.

Operated - Development
Western Flank Oil
Ex PEL 91
Beach 100%
A two-well oil development campaign commenced in the Pennington Field, located approximately 10 kilometres east of the Bauer Field.  Reservoir simulation modelling identified potential for improved field commerciality through in-fill drilling to accelerate production.  The wells are targeting the Namur Sandstone as a primary objective and the McKinlay Member and Mid-Namur Sandstone as secondary objectives.  The first well of the campaign, Pennington-5, intersected net oil pay of
2.2 metres in the Namur Sandstone and
1.8 metres in the McKinlay Member.  The well also encountered oil shows in the Birkhead Formation.  Pennington-5 was cased and suspended as a future producer and is expected online in Q4 FY17.
Ex PEL 92
Beach 75% and operator, Cooper Energy 25%
Preparations commenced for a five-well development drilling campaign in the Callawonga Field.  The campaign will seek to develop new oil reserves in the McKinlay Member and appraise the extent and productivity of the reservoir.  The Callawonga-7 and Callawonga-12 development wells proved oil within the McKinlay Member, however there has been minimal production to date.  It is currently anticipated that the campaign will commence in May 2017 and be completed by the end of June 2017, with production from successful wells online in H1 FY18.