Beach to Commence Shale Flow Stimulation in June

Beach will commence flow stimulation of its Holdfast-1 shale well in early June, which will be followed immediately by the flow stimulation of the Encounter-1 shale well.

In preparation for flow stimulation, the Holdfast-1 well has been successfully completed with Encounter-1 completion expected to be finalized within the next week.

The flow stimulation process may take up to two weeks for each well, after which they will be flow tested in preparation for a resource booking in July/August 2011.

Both Holdfast-1 and Encounter-1 are data gathering wells and as such are not designed to flow at levels expected of a production well.
The design of pilot production wells will be based on information gathered from the flow stimulation of, and earlier core samples retrieved from, Holdfast-1 and Encounter-1. The timing of these pilot production wells will be primarily driven by equipment availability, and as such, it is anticipated that the pilot production program will now commence early in 2012.


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