Beach Energy Updates on Stunsail-1 Oil Reserves in Cooper Basin's PEL 91
Beach Energy Ltd referred Monday to March 28 announcement that the Stunsail-1 exploration well in PEL 91 (Beach 40 percent and operator, Drillsearch Energy Ltd 60 percent) in South Australia's Cooper Basin discovered stacked oil pools within the McKinlay member, Namur Sandstone, Mid-Namur Sandstone and Birkhead Formation reservoirs.
Stunsail-1 intersected a 13.1 foot (4 meter) oil column within the McKinlay member and a 19.6 foot (6 meter) oil column in the Namur Sandstone primary target reservoir. An additional 19.6 foot (4 meter) oil column was also intersected within the Mid-Namur reservoir. Oil shows were encountered in the Birkhead Formation, with 2 intervals tested. The first drill stem test (DST) tested a 49.2 foot (15 meter) interval, and recovered 46 barrels of oil and 3 barrels of filtrate over a 4 hour period, equating to a test rate of in excess of 250 barrels of oil per day.
As a result of proving oil within multiple reservoirs, Stunsail-1 was cased and suspended as a future oil producer. Pending joint venture approval, Beach anticipates the Stunsail field to be developed during the 2015 financial year.
Conceptual Development Plan
New requirements under Chapter 5 of the ASX Listing Rules require that oil and gas companies reporting on hydrocarbon accumulations must detail the conceptual development plan for the discovery.
Commercial productivity of the McKinlay and Namur reservoirs is proven in offset fields within PEL 91. The Stunsail discovery is analogous to the commercial offset fields including Bauer, Chiton, and Hanson. As such, Beach has a high degree of confidence in the commercial productivity of the McKinlay-Namur reservoirs at Stunsail-1. Beach has carried out a preliminary economic evaluation of the project using costs based on analogous projects and internal company oil price assumptions to confirm its commercial viability.
Beach believes that Stunsail-1 can be developed using a standalone production facility, with oil potentially transported by truck to either the Bauer facility or the Lycium hub. Should there be further exploration and appraisal success in the proximity of Stunsail-1, this discovery has the potential to be developed with other fields in the same area through a pipeline to other facilities in PEL 91.
Pending joint venture approval, and dependant on results from further exploration, appraisal and development drilling, it is anticipated that the development of a standalone facility for the Stunsail field will:
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