Beach Energy discovers gas in southern Australia

Australia’s exploration and production company Beach Energy said it discovered a new gas field at Haselgrove-3 ST1, Otway basin in southern Australia.

Flow test results from the primary target Sawpit Sandstone indicate a high deliverability reservoir and provide encouragement to move towards commercialisation of a large gas resource, Beach said in a statement. The oil and gas company plans to undertake immediate follow-up testing to confirm well deliverability and assess connected volumes and gas composition.

“We are very encouraged by these results, and to witness in the early stage of testing such strong well deliverability from an onshore gas field is particularly pleasing,” said Beach’s CEO, Matt Kay, adding that a local government gas grant of AUS$6 million was a crucial element in its drilling decision.

Haselgrove-3 ST1 is located on state forestry land in PPL 62 (fully owned by Beach), approximately eight kilometres south of Penola.

Haselgrove-3 ST1 was drilled as a deviated well to a total measured depth of 4,331 metres and targeted the Sawpit Sandstone and shallower Pretty Hill Sandstone. The well intersected an estimated gross gas column of 104 metres (total vertical thickness (TVT)) in the Sawpit Sandstone, with estimated net pay of 25.6 metres (TVT), Beach said.

An estimated gross gas column of 11.6 metres (TVT) was also intersected in the shallower Pretty Hill Sandstone, with estimated net pay of 8.5 metres (TVT).

The gas flowed at a rate of 25 MMscfd during a cased holed test of the Sawpit Sandstone over the 4,023 – 4,185 metre interval. It sustained over a 100 minute period through a 36/64” choke and at 2,700 psig well head pressure. Flow rates were constrained to 25 MMscfd due to the size of completion tubing (2 7/8”).

Beach said early indications suggest the Sawpit Sandstone could flow at rates greater than 25 MMscfd.

The well is currently shut-in with preparations underway for commencement of an initial production test (IPT) in late January 2018. The IPT will confirm well deliverability and gas composition, and will assist field development planning. Results will be integrated with other subsurface data to enable estimation of the size of the gas resource.