beach

Beach surfing the unconventional wave
Thursday, 15 April 2010

BEACH Petroleum continues to make strides in unconventional gas with its farm-in to Lakes Oil?s PRL-2 lease in the onshore Gippsland Basin, eastern Victoria.

PRL 2

The agreement gives Beach the opportunity to test unconventional reservoir petroleum production and development technology developed in the US in recent years.

?We expect that Beach?s activities in shale and other unconventional opportunities in Australia will step up significantly, with an accelerated program now being considered for the Cooper Basin and this significant program in the onshore Gippsland, close to markets in Victoria,? Beach managing director Reg Nelson said.
http://www.petroleumnews.net/storyview.asp?storyid=1134515§ionsource=s0



Under the agreement, Beach can earn up to 50% in PRL-2 by carrying out work over two phases.

In the first phase, Beach can earn an initial 15% stake by funding 100% of the cost of fracturing, post-fracturing testing and flow testing of both the Wombat-4 and Boundary Creek-2 wells up to a cumulative maximum cost of $10 million.

Beach can then earn the remaining 35% by funding additional appraisal and development activities within PRL-2 up to a maximum cost of $40 million.

Beach will operate both phases of the program.

See Beach Energy at Excellence in Oil and Gas 2010 in Sydney from April 19-20.