asx release just out from Beach. what is interesting to me is: in the attached map. it ignores ATP855 last para says Beach expects a gas resource addition in July/Aug 2011 - i wonder just how BIG it might be, given the huge numbers they have mentioned previously. That should be a significant implication for ATP855, because it seems clear that PEL218 shale resource follows thru to ATP855. also mechanical problems for Encounter - a shame because it is closer to ATP855, but beach does not think its much of a problem. also they expect flow rates on pilot are normally higher than on flows after stimulation tests.
BEACH ON SCHEDULE TO COMMENCE FLOW STIMULATION OF HOLDFAST-1 SHALE WELL
Beach Energy Limited (ASX: BPT, "Beach") has rigged up on site, conducted mechanical checks and is ready to commence stimulation of the target zone in its PEL 218 Holdfast-1 shale gas well.
The flow stimulation of Holdfast-1 will be undertaken in eight stages and is expected to be completed within two weeks, with the first flow results expected in early July.
Both the Holdfast-1 and Encounter-1 wells were specifically designed as data gathering wells and not production wells. This will likely result in lower flow rates than would otherwise be achieved from horizontal wells typically used in plays in the USA and likely to be used in Beach?s future production and development activity. Flow stimulation of conventional gas wells has been an ongoing part of gas production in the Cooper Basin over the past 40 years, however, this will be the first time flow stimulation has specifically targeted shale target zones at depth.
The Encounter-1 shale well has experienced completion delays as a result of a well bore mechanical issue. During final checks of the recently installed stimulation work string, some adjustments were found to be necessary. While attempting to recover the work string from the wellbore, difficulties were experienced in removing it from the downhole latch assembly and it appears additional equipment will now be required to resolve the issue. This will likely result in a delay in the stimulation activities of Encounter-1.
Page 2 ASX Release There will be no impact on the shale gas pilot production program, set down for early 2012, as a result of the likely delay in the Encounter-1 flow stimulation. Indeed, this now provides Beach with more time to assess the results from Holdfast-1, from which it will be able to optimise the flow stimulation of the Encounter-1 well should it be required. It is expected that a shale gas resource addition will be made in July/August 2011.
cheers
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