Beach, Drillsearch Test Positive at Chiton Oil Discovery Well

Drillsearch Energy has provided an update on the development of the Chiton Oil Field. The company was advised by Beach Petroleum as operator early yesterday evening that it completed a flow test on the Chiton-1 oil discovery well.

The test was conducted following perforation across a 5.5 meter interval from 1409.6 to 1415.1 meters measured depth. The test was conducted for 1.3 hours and averaged an estimated flow rate over that period of 2,434 barrels of oil per day and day & 226 barrels of water per day.

Chiton-1 is the first Namur Sandstone oil discovery within PEL-91. The Namur Sandstone has proved to be a prolific oil producer along the same trend immediately to the south in PEL 92. An initial estimate of the potential resource based on this data, indicates recoverable oil reserves in the field in the range 0.04 to 0.39 million barrels (P90 to P10) with a P50 reserve of 0.12 million barrels.

After completion of the initial drilling operations, Chiton-1 was completed as a future production well and the further information acquired from the production test will enable Beach to refine the resource estimate for the Chiton Oil Field.

Working Interests in the Chiton-1 well and the Marino-1 well are Drillsearch Energy Limited, 60%, and Beach Petroleum Limited, 40%.