Beach Petroleum Provides Results of Kiana-1 Production Test

Kiana 1, Tyringa 1
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Beach Petroleum says the results of the 10 day well test conducted in November at Kiana-1 confirmed the oil producing Patchawarra sandstone (1941-1946 meters) is of good reservoir quality and laterally continuous. Following this successful conclusion, a 6 month Extended Production Test commenced on December 14th and the well is currently free-flowing at 450 barrels of oil per day with no water.

Kiana-1 is located in PEL 107, approximately 2 kilometers to the southwest of the Muteroo Oil Field, 2 kilometers northeast of the Spencer Oil Field, and 35 kilometers west of Moomba.

It is planned to continue production at approximately 450 barrels of oil per day. In late January /early February a lower sand from 1964.5-1967.5 meters will be perforated and is expected to initially add a further 200-400 barrels of oil per day to the production rate.

Plans for water handling facilities and artificial lift are being progressed for installation in mid 2006.

Joint Venture Participants in the Kiana -1 well are Beach Petroleum as operator with 40%; Great Artesian Oil & Gas with 30% and Magellan Petroleum with 30%.


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