Beach Petroleum Begins Operations at Kenmore Field

Beach Petroleum has spud the Kenmore-28 appraisal well in Kenmore field located in the Eromanga Basin, southwest Queensland, Australia. This well is the first well in a 3 well drilling program being undertaken by Beach in the Kenmore and Bargie oil fields. The next well will bet he Kenmore North-2 and then the Bargie-4 will be drilled in the Bargie field in ATP 269P.

Kenmore-28 will be the southernmost well in the Kenmore Field and test a structural culmination which has been identified by 3D seismic acquired by Beach in late 2002. If successful, the well is expected to yield incremental reserves of up to 0.6 million barrels. Kenmore-28 has a planned total depth of 1,555 meters, which is expected to be reached in the middle of next week.

Kenmore North-2, also based on the results of 3D seismic, will be an exploration well designed to test the crest of the Kenmore North structure, which is located about 2 km to the north of the Kenmore Field. Kenmore North-2 was drilled in 1987 at a location now interpreted to be near the edge of the structure and encountered a 5-meter oil column at the top of the Hutton Sandstone. Kenmore North-2 will be located 400 meters to the north and is expected to intersect the top Hutton about 15 meters updip of Kenmore North-1.

Potential mean recoverable reserves in Kenmore North structure are assessed to be 0.7 million barrels of oil with a highside of 1.3 million barrels identified.

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