Beach Petroleum Pleased with Basker-3 Development Well Results

Basker, Manta, Gummy Fields
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The Ocean Patriot has drilled the Basker-3 Development Well to a total depth of 4125 m MDRT. The well has now completed all logging, and is presently running the 7 inch production liner.

The wireline logging and pressure surveys (MDT log) have once again revealed better than expected results, confirming some 75.3 m of hydrocarbon pay thickness, the greatest thickness of hydrocarbon of any of the 4 wells drilled to date. Of this, some 23.2 m (plus potentially a further 8.8 m) is oil sand (compared to 16 m and 20 m at Basker 2 and 5 respectively), and 43.3 m of gas sand thickness, (these depths are all true vertical thicknesses). The well confirmed the top of structure at approximately 20 m higher than expected.

After casing the well, the drilling rig will return to Basker-4 and drill the production hole to a planned total depth of 3636 m MDRT. The Basker 3, 4 and 5 wells are all being drilled in an efficient manner using a batch drilling process. When all three wells are drilled, it is planned to sequentially install production tubing and perforate the wells, anticipated to be in early June.

With respect to the Extended Production Test of Basker-2, total cumulative production as of end April is 820,706 barrels and production for April was 89,455 barrels (approximately 3000 bopd). Effective 14th May 2006, the Extended Production Test will cease, following the invaluable and safe gathering of production data. Subsequently the two vessels Crystal Ocean and the Basker Spirit will sail to Singapore where they will both undergo major facility upgrades, and inspections, in readiness for the connection to the newly laid pipelines, umbilicals and manifold. The Full Field Development (FFD) project cost of A$304 million is forecast to produce an average rate of 25,000 bopd.

Participants in the Basker-Manta Joint Venture are Anzon Australia Limited as operator with 50% and Beach Petroleum Limited with 50%.

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