Beach has now discovered oil in the Parsons field, likely to contain more than 1 million barrels of recoverable oil, close to its Callawonga, Christies and Sellicks fields.
All four discoveries are on the western edge of the Cooper Basin in an area known as the West Patchawarra flank, an area virtually ignored by earlier explorers and which has now become a significantly productive area in the Basin.
Beach Petroleum managing director, Reg Nelson said today, "This latest discovery, close to the Christies, Sellicks and Callawonga oil fields confirms our belief in the potential of this under-explored region of the Cooper-Eromanga Basins."
"The region now deserves recognition as a significant oil sub-province of the Basins," he said.
Mr. Nelson said the reservoir quality encountered in Parsons-1 was "excellent" and could be better than that found in the Callawonga field, where recent wells have flowed at 5000 barrels of oil per day.
"The size of the Callawonga field and the deliverability of its wells, has been sufficient to encourage us to build a new pipeline to deliver oil to the Moomba processing facility – and thence to Port Bonython," Mr. Nelson said.
"Callawonga alone is expected to deliver around 5000 barrels of oil a day to markets on completion in the next month or so. Its role as a trunkline from the West Patchawarra Flank directly to markets is now assured and the costs of transport will now be reduced significantly."
Beach Petroleum has had a string successful exploration wells in the Cooper- Eromanga Basins since it originally bought out interests held by Santos and Origin Energy in the Bodalla block of southwest Queensland and subsequently began exploring in regions held by the Cooper Basin Joint Venture in South Australia.
The new Parson's discovery, in permit PEL 92 lies just 9km west-northwest and 8km southwest of the oil producing facilities at Christies and Callawonga.
Wireline logging on the Parson's 1 well indicates the presence of a gross oil column in the order of 12 meters in the Namur sandstone.
On finalization of the wireline logging program the well will be completed as a future Namur oil producer.
Beach Petroleum's view is that a connection will be established to the Callawonga pipeline for ultimate delivery to Port Bonython.
This pipeline is currently being constructed and on schedule for completion and commissioning early next year.
Mr. Nelson said, "These new discoveries will add to an expected substantial increase in production over the next two to three years from the large scale Cooper Oil Program, where the success rate has averaged over 70% over the last year."
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