THE COOPER BASIN DRILLING PROGRAMME PER BEACH...

THE COOPER BASIN DRILLING PROGRAMME PER BEACH


Cooper/Eromanga-Oil
PPL 220 75% Callawonga-5 December
PPL 220 75% Callawonga-6 December
PEL 92 75% Gunyah-1 January
PEL 92 75% Perlubie-1 February

About PEL 92 from Beach website

14 WELLS DRILLED
ONLY 3 FAILED
A VERY NICE PERMIT


PEL 92 (Beach 75%)

PEL 92 lies on the western flank of the South Australian Cooper Basin. Beach discovered oil at Sellicks-1 in 2002, at Christies-1 in 2003, and at Silver Sands-1 and Callawonga-1 in 2006. Beach drilled nine wells in the permit area during 2006 – two wells in the Christies Field, two wells in the Sellicks Field and five exploration wells. Of the nine wells, seven tested oil and six were completed as oil producers (a small recovery of oil at Boomer-1 was deemed sub-commercial).


In the first five-year permit term commencing Dec 2001, a total of fourteen wells were drilled in the permit area of which only three failed to test oil. The permit is now into the second five-year term. There are currently 10 oil production wells in the area (a commercial success rate of 71%).


Production is established within licences PPL-204 (Sellicks), PPL-205 (Christies), PPL-220 (Callawonga) and PPL-205 (Silver Sands). Production at August 2007 was about 2200 barrels of oil per day for the permit (1650 bopd Beach share). Three appraisal wells are planned on Callawonga for the third quarter of 2007, which are expected to add another 1500 bopd to the field rate. Oil is currently trucked about 30km to Tantanna and pumped to Moomba via the Tantanna pipeline, however a flowline from Callawonga to Tantanna is planned to be commissioned in 2007.


In response to the continued high commercial success rate in the permit, Beach and its partner, Cooper Energy, acquired a 276km2 3D seismic survey in December 2006 to better address oil prospectivity along the Christies–Callawonga structural trend. Following the interpretation of the 3D seismic data in early 2007, three appraisal well locations at the Callawonga field have been identified, and two exploration locations approved (Sheringa-1 and Parsons-1). This five well drilling campaign will commence in the latter half of 2007.