now let's wait for bauer , page-7

Beach to ramp up production


Australian duo Beach Energy and Drillsearch Energy have an extensive development programme in the works on their PEL 91 joint venture in South Australia’s Cooper basin.
The programme aims to bring into production the significant oil discoveries made at the permit during the 2012 Australian fiscal year, which ended on 30 June.

Drillsearch reported that aspects of the programme were already underway, including the spudding of the Bauer-5 appraisal/development well, which commenced yesterday.

Bauer-5 will assess further development of the McKinlay and Namur reservoir sands encountered at Bauer-1, which started production in May, and the potential development of the Lower and Middle Birkhead formation where oil shows were encountered in both Bauer-1 and the nearby Basham-1 well.

The programme will also include the drilling, completion, testing and connection of six other appraisal and development wells in the Western Flank oil fairway.

“This appraisal and development programme could substantially increase our overall reserves for the Bauer, Chiton and Arno oil discoveries,” Drillsearch managing director Brad Lingo said in a statement.

“We don’t believe we have found the crest of the Bauer oilfield yet and current 3D seismic indicates a potential northern extension of the field, possibly as far north as [the] Arno oil discovery location.”

In addition, the joint venture will build a 47-kilometre oil export pipeline, costing about A$12 million (US$12 million), from the Bauer central oil production facilities to Beach’s Lycium oil pipeline hub.

Construction is due to start in October, with commissioning expected by the end of the year.

The partners completed the construction and commissioning of the Bauer central oil production facilities in May, and Drillsearch reported that the Bauer-1 and Bauer-3 production wells were currently producing oil at a consistent rate of 800 barrels per day.

However, upon completion and commissioning of the export pipeline, the company believes output from the Bauer oilfield will rise to more than 5000 bpd by the end of the year.

“With the central production facilities substantially complete and already commissioned, we will be able to ramp up production rapidly from our existing discoveries, as well as accelerate the time to first oil production and reduce development costs for any new oil discoveries,” Lingo said.

The joint venture will also undertake a substantial exploration drilling and seismic acquisition programme next year, including drilling five exploration wells within the area covered by the Aquillus and Limbatus 3D seismic surveys completed last year.

The pair have also committed to a 400 square kilometre 3D shoot covering the south-eastern portion of PEL 91, which is believed to be the transition zone between the Western Cooper wet gas and Western Flank oil fairways.

“The considerable size of the Irus 3D seismic coverage area highlights how prolific this portion of the Western Cooper basin is and how much additional prospectivity remains,” Lingo said.

“This region is very exciting as we are looking at an area where a number of plays converge, both in shallow as well as deeper zones.”

As operator in the PEL 91 joint venture, Beach holds a 40% interest while Drillsearch Energy holds the remaining 60% stake.

The Bauer oil field has currently recorded proven, probable and possible reserves of 11.5 million barrels of oil and has a high estimate contingent resource of 3.8 million barrels.


http://www.upstreamonline.com/live/article1260108.ece