Beach Spuds Telowie-1 in Cooper Basin

Beach Petroleum Limited, the operator for PEL 94, that the Telowie-1 exploration well commenced drilling at 6:30 p.m. Central Daylight Time (CDT), on Friday, according to Victoria Petroleum N.L. At 6 a.m. CDT Monday, the well had reached a depth of 586 meters and the current operation is nippling up BOPs prior to drilling ahead.

Telowie-1 is located in PEL 94 in the southwest portion of the Cooper Basin, and Victoria Petroleum holds a 15% interest. It is the sixth exploration well in Victoria Petroleum's planned 16 well 2007 Cooper Basin exploration drilling program.

Telowie-1 is programmed to be drilled to a Total Depth (TD) of 1367 meters and will take approximately 7 days to drill from the start of drilling.

The Telowie Prospect is located on the southern flank of the Cooper Basin, approximately 90 km south of Moomba and will test a simple anticlinal structure located on the north-eastern end of the Milpera Horst. The primary objective is the Late Jurassic to Early Cretaceous Namur Sandstone and McKinlay Member, with strong secondary potential in the Early Cretaceous Murta Formation. The nearest oil production is from the Dunoon Horst oil fields (~25 km to the northeast of Telowie) comprising, Harpoono and Revenue. These discovery wells are all oil productive from the Murta Member. Harpoono-2 and Revenue-1 also intersected oil in the McKinlay / Namur Formation. Recently, Might & Power-1 was drilled and intersected a live oil column in the Murta.

These oil flows along with the shows in other nearby wells demonstrate the potential that could exist for oil to occur in several reservoirs at the Telowie-1 location.

Potential reserves for the Telowie Prospect are 6.6 million barrels of recoverable oil, if oil is present.

Commenting on the start of drilling at Telowie-1, John Kopcheff, Managing Director for Victoria Petroleum N.L. said;

"Vicpet is pleased to be continuing with its 16 well 2007 exploration program in the Cooper-Eromanga Basin with the Telowie-1 exploration well. An oil discovery at Telowie-1 would further confirm our belief in the known oil producing potential of the northern part of the Cooper Basin, where Victoria Petroleum is the largest acreage holder."

Participants in the drilling of Telowie-1 and their respective interests are:

  • Victoria Petroleum 15%
  • Beach Petroleum Ltd (Operator) 50%
  • Magellan Petroleum 35%

Victoria Petroleum N.L. has a 15% interest in the Telowie-1 well and PEL 94 through its wholly owned subsidiary, Victoria Oil Exploration (1977) Pty Ltd.