kenmore 33 flows at 750bpd, page-2

Follow through press release for those interested ...



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N E W S
· R E L E A S E ·
FOR IMMEDIATE RELEASE
20 December 2004
BEACH READIES TO GO OFFSHORE ON JAN 6
AS ONSHORE KENMORE SUCCESSES BUILD
Beach Petroleum Limited has announced January 6 next year as the expected spud date
for its first Australian offshore exploration venture in three years.
The announcement by Beach today that the Hurricane-1 oil exploration well (Beach
interest 10%) is expected to spud in WA-208-P in the opening week of the New Year
coincided with weekend results of a further expansion of its 100%-owned onshore
oilfield at Kenmore in the Eromanga Basin of far southwest Queensland.
“Both events, and our ongoing exposure to direct equity positions in the just listed
Anzon Australia, and the minerals explorer, Ramelius Resources Limited, are
positioning the Company in 2005 for the most active and rewarding period in its
history,” Beach Petroleum Managing Director, Mr Reg Nelson, said today.
“For the first time, the Company’s onshore exploration and production assets will be
balanced with exposure to two offshore exploration and development programs in
proven provinces on either side of the Australian coastline,” Mr Nelson said.
“On a whole-of-company basis, we expect onshore oil production to move to above
3,000 of oil per day from next month as our latest Kenmore successes come on line.
“Coupled with entitlements from any success offshore in 2005, we are poised to grow
substantially as an oil producer over the next 12 months.”
Beach Petroleum has a 25% interest, with the right to acquire a further 12.5% stake, in
the Basker, Manta and Gummy (BMG) oil and gas fields in the Gippsland Basin in
Bass Strait (Anzon Australia 75%) as well as a 9.7% interest in Anzon, acquired at a
30% discount, as a foundation shareholder in last week’s successful ASX listing of that
company.
issued through
FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]
- 2 -
Through previous corporate structures, the Company has also retained a 22% interest
in gold and nickel explorer, Ramelius Resources.
Ramelius last week reported a massive nickel sulphide at its Hilditch project south of
Kalgoorlie in Western Australia.
Two offshore WA wells
Mr Nelson said today that the spudding of Hurricane-1, 11 kilometres west of the
producing Legendre oil field and in WA-208-P, was a moderate risk drilling
opportunity with mean potential recoverable reserves assessed at approximately 24
million barrels of oil within the Lewis Trough of the Carnarvon Basin.
Scheduled for drilling by the ENSCO-56 drilling rig, Hurricane-1 has a planned total
depth of 3,200 metres and will take 14 days to drill and evaluate. Partners in the well
are Woodside Petroleum Ltd (34.03%), Santos Ltd (11.46%), Santos Offshore Pty Ltd
(19.85% (Operator), Eni Australia B.V. (18.66%) and Mosaic Oil NL (6.00%).
Mr Nelson said Hurricane-1 would be followed immediately by the drilling of the
Corowa East-1 exploration well, further to the south, in WA-264-P (Beach 16.7%) in
partnership with Santos Limited and Kufpec Australia Pty Limited.
The two offshore wells will be in addition to the Company’s announcement last week
that in joint venture with Anzon Australia, the Floating Production Storage and
Offtake vessel, Crystal Ocean, had been contracted for an extended production test
from mid-2005 of the Basker oil field in Bass Strait.
Kenmore oil field expanded
Beach Petroleum today celebrated a strong end of year finish to its 2004 oil and gas
drilling program with a 750 barrels per day oil flow from a new Kenmore field well.
The Company said drill stem testing of the Hutton Sandstone in the appraisal well,
Kenmore-33 in PL 32, had resulted in a stabilised oil flow of 750 barrels per day, with
no accompanying water. The well will be cased and completed for oil production.
“Kenmore-33 completed a trifecta over past weeks of appraisal wells in the field and
we are now likely to bring forward the drilling of a fourth such well at Kenmore,” Mr
Nelson said.
“Installation of artificial lift on Kenmore 31, 32 and 33 will be completed in January
and is expected to result in initial incremental production of about 1,500 barrels of oil
per day,” he said.
“The impact on field reserves of this recent drilling, is currently being determined.”
issued through
FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]
- 3 -
If the additional Kenmore-34 is drilled, it will be followed by the Coolum-1 exploration
well in ATP 269P and then Bodalla South-15, all in the Eromanga Basin
Mr Nelson said the rig was then expected to return to the South Australian section of
the Cooper Basin, most probably to drill Almonta-1 in PEL 95 (Beach 50%).
MEDIA CONTACTS:
Reg Nelson Beach Petroleum Limited 08 8338 2833
Kevin Skinner Field Public Relations 08 8234 9555 / 0414 822 631
Mark Lindh Investor Relations 0414 551 361