Beach Petroleum to Spud Callawonga-1

Beach Petroleum expects to spud the Callawonga-1 exploration well on July 14th using the Century 3 rig. It is expected to take 12 days to reach total depth of 1,931 meters.

Callawonga-1 will test a robust anticlinal structure in the east of PEL 92 in Australia. The primary objectives of the well are the Namur Sandstone and the Hutton Sandstone, which are productive in the Christies oil field, some 7 km to the south-southeast. The Poolowanna Formation is a secondary objective.

The Callawonga prospect covers an area of 5 km2 and has 23 meters of structural relief with estimated P50 recoverable reserves of 1 million barrels of oil in the Namur Sandstone and 0.7 million barrels of oil in the Hutton Sandstone. The prospect has a low risk (32% probability of success) with hydrocarbon charge being the key risk element. Each of the other risk elements (trap effectiveness, reservoir presence and seal) is considered low risk.

The participants in PEL 92 are Beach Petroleum as operator with 75% and Cooper Energy with 25%.