Kiana-2, an appraisal well, spudded in PPL 212 on October 1.
The Kiana oil field which is located approximately 32 kilometers west of the Moomba oil and gas plant was discovered in September 2005, and production commenced in December from the Patchawarra Formation in the Kiana-1 well. To the end of August 2006, the well had produced more than 81,000 barrels of oil.
Kiana-2 is designed to appraise the south-western culmination of the Kiana structure approximately 640 meters southwest of Kiana-1. Based upon the current 2D seismic data, if Kiana-2 is successful it will be ideally located at the crest of the culmination to optimize drainage from the field. The main objective of the well is the Patchawarra Formation.
The well is being operated by Beach Petroleum and it is expected to take approximately 14 days in total to drill and evaluate.
Participants in Kiana-2 are Magellan Petroleum with 30%; Beach Petroleum as operator with 40% and Great Artesian Oil & Gas with 30%.
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