Conventional oil

September 2017 Quarter

Operated - Exploration and Appraisal
 
Western Flank Oil - ex PEL 91
Beach 100%

The second well of a two-well oil appraisal campaign was completed in the Chiton Field, located approximately two kilometres south of the Bauer Field. The campaign was designed to appraise the extent and productivity of the McKinlay Member to the south and east of currently producing wells, where there has been limited appraisal drilling to date. The second well of the campaign, Chiton-5, was plugged and abandoned due to lack of commercial pay. Both wells were step-out prospects which helped define field boundaries. Results will assist with design of the final development plan for the Chiton Field.

Beach commenced its FY18 operated Birkhead oil exploration and appraisal campaign. The Birkhead Formation is a proven oil reservoir in Western Flank fields, however has not been subjected to play-wide, focused exploration and appraisal. The FY18 program aims to establish commerciality and size of existing discoveries, appraise field extensions, discover new accumulations and design cost effective development programs.

The first of up to three vertical exploration wells, Donington-1, was drilled to appraise a potential southern extension of the Kangaroo-1 discovery. The well intersected oil shows in the Birkhead Formation, however reservoir quality was insufficient for commerciality. The well was subsequently side-tracked to target seismic attributes further north. Similar reservoir quality was encountered and the well was plugged and abandoned.
The second vertical well of the campaign, Goldsmith-1, was drilled four kilometres north of Kangaroo-1 to test a potential northern extension of the Kangaroo Field. Oil shows were intersected in the target interval, however low reservoir quality resulted in side-tracking of the well approximately 400 metres west of the original target. The side-track did not intersect reservoir in the target interval and Goldsmith-1 was subsequently plugged and abandoned.

These vertical exploration wells were designed to test the true up-side of the Kangaroo Field. Based on the results, future drilling will be focused on the lower risk area in closer proximity to the Kangaroo Field. This will be appraised and developed along with existing Birkhead oil discoveries in the Stunsail, Pennington, and Stanleys fields. Drilling of development wells is planned to commence at the end of H1 FY18 upon completion of Beach’s operated gas exploration campaign.


Non Operated - Exploration and Appraisal
 
Western Flank Oil - ex PEL 104/111
Beach 40%, Senex Energy 60%

The Marauder-1 oil exploration well discovered a new field approximately two kilometres north of the producing Growler and Spitfire fields. The prospect was identified from the Mollichuta 3D seismic survey and drilled to test a seismic feature mapped at the same stratigraphic level as the Growler and Spitfire fields. Marauder-1 encountered oil shows within the target Birkhead Formation, with the operator’s evaluation of logs indicating 8.6 metres of net pay across a 17.5 metre gross oil bearing interval. A drill stem test over the interval from 1,744.2 to 1,764.6 metres recovered 84 barrels of approximately 48 degree API oil. Oil flowed to surface after 79 minutes and continued to flow for the full 184 minute flow period on a 32/64” choke. The flow rate was calculated to be 655 barrels of oil per day, with no indication of formation water throughout the drill stem test. Marauder-1 commenced production in Q1 FY18.

Martlet North-2 was drilled as a deviated oil appraisal well targeting a Namur Sandstone accumulation approximately 250 metres northeast of the producing Martlet North-1 well. The well was drilled from the Martlet North-1 pad and aimed to improve overall field recovery. Martlet North-2 was plugged and abandoned due to lack of commercial pay.

South Australian Oil - Cooper Basin JV
FFA JV: Beach 20.21%, Santos 66.6% (operator), Origin 13.19%

The four-well oil appraisal and development campaign in the Merrimelia Field included two appraisal wells, Merrimelia-63 and Merrimelia-67. Merrimelia-63 tested reservoir limits of the Birkhead Formation along the northeast flank of the field as a primary objective, and the Mackunda and Murta formations as secondary objectives. The well intersected 1.2 metres of net oil pay in the primary target and was cased and suspended as a future producer. Merrimelia-67 was drilled on the southwest flank of the field and targeted the Murta Formation as a primary objective with secondary targets in the Mackunda, Birkhead, McKinlay and Namur reservoirs. The well intersected 3.3 metres of net oil pay in the primary target and was cased and suspended as a future producer.
 
Queensland Oil - Cooper Basin JV
Total 66 JV: Beach 30%, Santos 70% (operator)

The three-well oil development and appraisal campaign in the Zeus-Minos-Tennaperra Complex included two appraisal wells, Zeus-11 and Tennaperra-5. Zeus-11 targeted the Birkhead Formation and was drilled to appraise the northwest flank of the Zeus structure. The well intersected 4.4 metres of net oil pay and was cased and suspended as a future producer. Tennaperra-5 also targeted the Birkhead Formation and was drilled to appraise the southern flank of the Tennaperra structure. The well intersected 4.7 metres of net oil pay and was cased and suspended as a future producer.
 
Operated - Development
 
Western Flank Oil - ex PEL 91
Beach 100%

Beach successfully completed its first operated horizontal well in the Western Flank. Bauer-26 comprised a lateral section of approximately 400 metres and targeted the McKinlay Member, a thin sandstone overlaying the Namur Sandstone, with accumulations covering areas larger than the Namur fields. The McKinlay Member is a proven oil reservoir, however has not been subjected to focused development. The formation is considered suitable for geo-steered horizontal drilling, with potential for high daily production rates. Bauer-26 was landed successfully within the McKinlay Member and intersected net oil pay of approximately 350 metres. The well was brought online in August 2017 with an initial free-flow production rate of approximately 450 bopd. Review of further McKinlay development locations is underway, with follow-up wells planned for H2 FY18 and FY19.
 
Non Operated - Development
 
South Australian Oil - Cooper Basin JV
FFA JV: Beach 20.21%, Santos 66.6% (operator), Origin 13.19%
 
A four-well oil appraisal and development campaign was successfully completed in the Merrimelia Field, located approximately 35 kilometres north of the Moomba processing facility. The campaign included two development wells, Merrimelia-65 and Merrimelia-66. Merrimelia-65 was drilled to develop additional Birkhead Formation reserves on the southwest flank of the field. The well intersected 7.7 metres of net oil pay in the target zone and was cased and suspended as a future producer. Merrimelia-66 was a lateral well drilled on the southeast flank of the field to target the Murta Formation. The well was cased and suspended as a future producer following intersection of oil shows throughout the Murta reservoir.
 
Queensland Oil - Cooper Basin JV
Total 66 JV: Beach 30%, Santos 70% (operator)
 
A three-well oil development and appraisal campaign was successfully completed in the Zeus-Minos-Tennaperra Complex, located approximately 60 kilometres southwest of the Jackson oil facility. The campaign included one development well, Zeus-12, which aimed to accelerate production and enhance recoveries from the Birkhead Formation. The well intersected 4.5 metres of net oil pay within the primary target and was cased and suspended as a future producer.
 
Queensland Oil - Cooper Basin JV
Naccowlah JV: Beach 38.5%, Santos 55.5% (operator), others 6.0%
 
The Irtalie East-6 oil development well is located approximately 25 kilometres southwest of the Jackson oil facility. The well was drilled from the existing Irtalie East-3 pad as a standalone deviated well and targeted the Birkhead Formation. Irtalie East-6 was cased and suspended as a future producer following intersection of approximately nine metres of net oil pay in the target formation. Well results are under review and may support follow-on drilling from the same location to different bottom-hole locations.