Itchy-1 (Beach 20.21%) is located 50km southeast of Moomba, South Australia and 3km east of the Limestone Creek oil production facility. A drill stem test of the Hutton Sandstone resulted in an oil flow at a rate of 2,174 bopd through a ½" surface choke. The well has been cased and suspended and will be completed as soon as practicable for oil production.
Ramses-2 (Beach 28.8%) was drilled primarily as a gas appraisal well in the Ramses Gas Field in southwest Queensland, approximately 75km northeast of the Ballera gas plant. A test of the Jurassic aged Poolowanna Formation resulted in a flow of oil to surface at an inferred rate of approximately 588 bopd.
The Joint Venture is currently considering options for utilization of the Ramses-2 wellbore for oil and/or gas production and may consider further appraisal drilling.
These discoveries follow a successful nine-well oil development program in the Yanda Field in SW Queensland (Beach 20%), which was carried out in the period September - December 2006. Prior to 2006, the primary activity at Yanda had been associated with the development of gas reserves in the Permian section, which provided a cornerstone reserve for the Southwest Queensland Gas Project. Oil in the shallower intervals had been recognized in several earlier Yanda wells, but rarely specifically targeted.
All nine wells in the 2006 campaign (Yanda-17 through Yanda-25) were cased and suspended as potential oil producers from the Murta Formation and/or Hutton Sandstone. Completion and connection of these wells are in progress, and oil production is expected to increase to a rate of about 500 bopd (Beach share 100 bopd) through April 2007.
Itchy-1 and the Yanda program are components of the "Cooper Oil Program," operated by Santos Limited. In the coming months, the focus of this program will move to the Naccowlah Block (Beach 38.5%) in southwest Queensland, where a drilling campaign of more than twenty wells will be undertaken.
During 2007 Beach expects to participate in the drilling of up to 130 wells associated with the Cooper Oil Program.
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