Beach Finds Oil at Balgowan-1 Exploration Well in PEL 91 in Cooper Basin

Beach Energy Ltd (Beach) reported Wednesday that oil was discovered in the Namur Sandstone and McKinlay Member at Balgowan-1, an exploration well in PEL 91 (Beach 40 percent and operator, Drillsearch Energy Ltd 60 percent) in South Australia's Cooper Basin.

The Balgowan-1 well met expectations by encountering hydrocarbons in the primary target, intersecting a gross oil interval of approximately 29.5 feet (9 meters). Of this, 11.4 feet or 3.5 meters (gross and net) were encountered in the Namur Sandstone, with 16.4 feet or 5 meters (6.5 feet or 2 meters net) in the overlying McKinlay Member.

Reg Nelson, Beach managing director, said “The new field discovery at Balgowan has extended the oil fairway in PEL 91 that includes recent exploration success at Stunsail, Congony, Kalladeina and Sceale. This extension brings a new focus on a number of other prospects in this northern area of the permit. The Western Flank continues to remain a key focus of Beach, however, we have also started focusing our efforts on the Eastern Flank of the Cooper Basin. Through our farm-ins with Bengal Energy in ATP 732 and more recently with Drillsearch in ATP 924, we plan to utilize our expertise to interpret 3D seismic information to identify prospects for drilling in the first half of 2015.”

Upon completion of casing operations, the Ensign 930 rig will be moved to the Burners-1 exploration well, located midway between the Balgowan and Stunsail discoveries.