opl announcement

South Belridge Hits Oil at Second Well of Six Well Program
Orchard Petroleum Limited (ASX; OPL) (Orchard) and Orchard Petroleum Inc. (OP Inc), a
wholly owned subsidiary of Orchard, are pleased to announce drilling and development activities
at South Belridge(Sledge Hamar).
Highlights
• The South Belridge #5-7 well has reached total depth of 5,035 feet and has been
logged and completed. An extensive oil and gas accumulation was encountered in
the Diatomite formation. In the shallow Etchegoin section, gas was also
encountered.
• The third South Belridge well in the current six well program, #6-7, commenced
drilling at 10:00 am Monday 19th September, 2005, Pacific Standard Time. This will
be the ninth well drilled at South Belridge.
• Beginning 22nd September, 2005 a new hydraulic fracturing program provided by
Halliburton will start at South Belridge with the #4-7 and #5-7 wells undergoing
multi stage stimulation programs over identified intervals across more than 2,500
feet of hydrocarbon bearing Diatomite formation.
• The new fracturing program is designed to quickly bring into production these
recently completed wells and accelerate the field’s overall oil and gas production.
• The sixth well in the current drilling program will have as its primary target the
shallower Etchegoin formation. This well will be designed to determine whether
there is significant potential in the shallow gas seam across the acreage and whether
a separate development program should be established to go along with the ongoing,
oil rich Diatomite development program.
OP Inc. has a 25% interest in the South Belridge project and is the Operator. Maxim TEP holds a
75% interest and funds 100% of the first US$28 million of development capital for the multiwell
drilling program.
Comments
OP Inc. is quite pleased with the excellent results from the South Belridge #5-7 well. The current
six well program is running on schedule and within budget. The planned hydraulic fracturing of
these completed wells in quick succession after completion means that new production can start
as early as next month and have a substantial positive impact on production levels.
Orchard Petroleum Limited
ABN 25 061 655 463
The new six well program will double the number of wells drilled and completed at South
Belridge. A further 10 wells already announced last month and contracted to start early in the
new calendar year will lock in the newly established production momentum through 2006.
South Belridge (SB) Drilling
The SB #5-7 well spudded on 7 September 2005 with a planned total depth of 5,000 feet. This
well like the SB #4-7 just completed is part of an expanded six well drilling program to develop
the Diatomite formation in this area.
The SB #5-7 well reached total depth at 5,035 feet. It was logged and 5-1/2” casing was run to
complete the well and the rig was released on 17 September 2005. The SB #5-7 well
encountered strong oil and gas shows across the Diatomite sections. In addition, strong gas
shows were also encountered in the shallow Etchegoin interval around 1,900 feet.
A hydraulic fracturing program has been prepared by OP Inc. for both the SB #4-7 and SB #5-7.
The fracturing program is designed to open up identified intervals over a 2,500 feet interval of
hydrocarbon bearing Diatomite formation. Both wells will be fracture stimulated together in
order to improve efficiency in managing fixed costs and to bring production on sooner.
Halliburton will be performing the fracturing program planned to begin on 22 September 2005.
The SB #6-7 well spudded at 10:00 am on 19 September 2005 Pacific Standard Time with a
planned total depth of 5,000 feet and is the third well in a six well program to develop the
Diatomite sections as well as examine the shallow Etchegoin intervals.
The final well in this six well program will be specifically designed to test the shallow gas
sections encountered in each of the previous wells drilled. Depending on the results of this well,
a separate gas development program will be examined along with the ongoing Diatomite
development program.
OP Inc. has already contracted a drilling rig for a 10 well drilling program at South Belridge to
start in the new calendar year. This new drilling program will focus on the continued
development of the Diatomite and Olig Potter discoveries to date.