Bauer-19 Well Results May Raise Bauer Oil Field Reserves in Cooper Basin

Beach Energy Ltd. reported Tuesday that the Bauer-19 deviated development well in PPL 253 within PEL 91 (Beach 40 percent and operator, Drillsearch Energy Ltd. 60 percent) in South Australia's Cooper Basin has been cased and suspended as a future McKinlay and Namur oil producer, after intersecting 28.5 feet (8.7 meters) of net oil pay within the Namur Sandstone, as well as a 13.1 foot (4.0 meter) gross interval of oil bearing McKinlay Member.

Bauer-19 was the third well in a six well development campaign at Bauer. The well intersected the top of the Namur reservoir 15.4 feet (4.7 meters) high to prognosis. The 28.5 foot (8.7 meter) Namur oil column is better than the pre-drill prediction of 13.1 feet (4.0 meters), and this result may increase the estimated ultimate recovery of oil from the Bauer field.

Bauer-19 is the first well to reach total depth as part of a four well pad development. The Ensign 965 rig delivered a Cooper Basin record, taking only 14 hours from completing the top hole in Bauer-18 to the spud of Bauer-19. The pad drilling technique is being undertaken to reduce footprint, time and resultant costs.

Beach anticipates that production levels within PEL 91 will remain strong as a result of: the aforementioned development program; new facilities such as CKS (Congony-Kalladeina-Sceale) coming on-line; the facility expansion at Bauer moving from 50,000 barrels per day (bpd) fluid handling to 75,000 bpd; and further exploration and appraisal wells planned for 2H FY15.

A flow test was completed at Stunsail-1 prior to the well being brought on-line. The well flowed from the top Namur / Mckinlay at a rate of 6,768 barrels of oil per day (bopd) and from the Mid Namur at 1,152 bopd for a combined total of 7,920 bopd. The wellhead pressure was 253 psi through a fully open 64/64 inch choke setting.

Reg Nelson, Beach managing director, said “The Bauer oil field is becoming reminiscent of fields such as Kenmore and Bodalla. I liken it to the ‘magic pudding’ effect, in that the field just continues to surprise and deliver upside results. To have development wells delivering these results over and above what is built into our guidance is great news. Supporting existing production on the Western Flank is not just about exploration and appraisal, but just as importantly about strategically located development wells.”

The Ensign 965 rig is drilling ahead at Bauer-16 and, after reaching total depth, will finish drilling the final two wells from the Bauer pad.


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