Halliburton had two fracture stimulations to complete in the...

Halliburton had two fracture stimulations to complete in the Cooper basin before commencing Arrowsmith-2.

Beach Presentation March 1, 2012 stated that the SACBJV between Beach, Santos and Origin had a ‘dedicated shale well recently fracture stimulated'. In the same presentation Beach noted that Encounter-1 was to be fracture stimulated in Q1 2012.

The Beach drilling report February 2012 stated:

‘Workover operations have successfully cleaned out the Encounter-1 wellbore in PEL 218 (Beach 100%). Tubing will now be installed ready for the fracture stimulation activities which are now expected to occur in early April once the fracture stimulation crew has completed a program with the Cooper Basin Joint Venture (Beach 20.21%)’

NWE release March 2 stated:

‘Norwest has continued to work closely with Halliburton to ensure securing the fracture stimulation equipment for Arrowsmith-2 as soon as possible.

The fracc spread is currently being utilized in the Cooper Basin until late April 2012, and then subject to no delays, will be serviced and immediately mobilized to the northern Perth Basin, with the objective to commence operations as soon as is practical.

Norwest is well advanced with planning, procurement and site preparation for delivery of the fracc spread, and for the commencement of the Arrowsmith-2 hydraulic fracture stimulation and flow testing program.’

From these releases it would appear that all is on track for Halliburton to move to the hydraulic fracture stimulation of Arrowsmith- 2 in late April to early May.

The next indication of timing may well be the March drilling report by Beach.

Looks like the options should be in the money.