Beach Petroleum Farms-in to PEL 91
Beach Petroleum has reached agreement with Great Artesian Oil and Gas to earn up to a 50% interest in exploration permit PEL 91. This permit lies immediately north of PEL 92 in which the Sellicks–1 oil discovery was made by Beach in July this year. The Sellicks-1 discovery, which flowed oil at approximately 2000 bbls/day from the Permian Patchawarra Formation, significantly upgraded the prospectivity of PEL 91.
Beach will earn a 40% interest in PEL 91 by contributing to the cost of initial exploration activity, including the acquisition of seismic during the fourth quarter, 2002, followed by exploration drilling in 2003. Beach has the option to earn an additional 10% interest by contributing to further activity in the permit. Beach will act as Operator of the PEL 91 joint venture during the farm-in program and any resultant production activity in the permit.