Beach Energy Updates on Drilling Ops in Australia and Eygpt

Beach Energy Ltd. provided Wednesday the monthly drilling report on the company's upstream holdings in Australia and Egypt.

Australia – Cooper and Eromanga Basins

Development

South Australian Gas (Fixed Factor Area Joint Venture: Beach 20.21 percent, Santos 66.6 percent and operator, Origin 13.19 percent)

A three‐well development drilling campaign was completed in the Moomba South Field, which aimed to develop booked gas reserves in the Toolachee and Daralingie formations. Wells were drilled using under‐balanced drilling (UBD) techniques, a commonly used method whereby wellbore pressure is maintained below formation pressure to preserve formation integrity. This approach is suitable for high permeability, low pressure reservoirs, and was successfully undertaken in the Moomba South Field in 2007. All wells in the current campaign were initially drilled in a batch to the top of the Toolachee Formation and cased, with drilling under‐balanced through the Toolachee and Daralingie formations then undertaken. The UBD technique proved successful with all wells in the campaign completed (Moomba‐209, ‐210 and ‐211).

A six‐well infill development drilling campaign is underway in the Moomba North Field, which aims to develop booked reserves in the Toolachee, Daralingie and Patchawarra formations. A phased approach is being undertaken to drill 26 new wells in the area, six of which were drilled in 2014. Techniques from the 2014 campaign will be applied to the current campaign, including pad drilling, optimized well designs and improved well completions. Moomba‐206, the fourth well of the campaign, intersected gas pay slightly below pre‐drill estimates and was cased and suspended as a future producer. Moomba‐207 is drilling ahead.

Exploration and Appraisal

Ex PEL 91 (Beach 40 percent and operator, Drillsearch 60 percent)


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