Beach Reports Encouraging Gas Shows at Bungaloo-1 Well in Otway Basin

Beach Energy on Tuesday announced encouraging gas shows at Bungaloo-1 well on the South Australian side of the onshore Otway Basin.

The well has been cased and suspended and further core analysis is being undertaken to support initial evidence of both conventional and unconventional gas reservoirs.

Bungaloo-1 is located approx. 14 kms north west of the first well in the program, Jolly-1 ST1, and reached a total depth of 3,713 meters.

According to Beach, both Bungaloo-1 and Jolly-1 were drilled to assess the potential for liquids rich gas within the shale and tight sandstone in the Lower Sawpit Shale and the Casterton Formation in the Penola Trough.

“Results to date have confirmed the unconventional potential of the Lower Sawpit Shale and Casterton Formation in the Penola Trough, with elevated gas readings over both intervals observed during drilling.
Importantly, these wells have also highlighted the potential of a conventional gas play with the Sawpit Sandstone as the reservoir in the deeper areas of the Penola Trough,” Beach said.

Conventional gas fields in the vicinity of Bungaloo-1 and Jolly-1 produced a cumulative total of 75 bcf of sales gas and 450,000 barrels of condensate from conventional structural targets between 1992 and 2011. Beach retains production licenses and maintains a gas processing facility nearby with a network of connecting pipelines.

Beach is the operator with 70% interest while Cooper Energy has remaining 30% stake.