Beach Energy Update on Cooper Basin Shale Gas Well

Beach Energy said that it is likely to start the main fracture stimulation program at its Encounter-1 shale gas exploration well in the Cooper Basin in the second half of this month.

The stimulation and evaluation program will begin with the treatment of the Patchawarra interval followed by a flow test for a period of up to 30 days.  

This is expected to provide a clearer picture of the company’s Cooper Basin shale play and assist in the design of the horizontal program.

A diagnostic fracture injection test of the Patchawarra Formation had indicated fracture initiation pressures consistent with the Holdfast-1 well.

Holdfast-1 well had flowed about 2 million cubic feet of gas per day after it was fracced last year and data from this well is believed to have been incorporated into the design of the Encounter-1 frac.

Beach had previously estimated in-place gas reserves of 2 trillion cubic feet for each of the two wells.

The Moonta-1ST1 well is currently drilling ahead in the Patchawarra Formation (currently at around 3,500 metres) after delays due to weather and  technical issues,  which lead to  the successful completion of a side track. 

It is expected that Moonta-1ST1 will take approximately two weeks to reach its planned total depth at the base of the Patchawarra Formation.  This well is the first in a campaign of at least five wells designed to delineate the resource potential of the shale and basin centred gas play within the Nappamerri Trough.