BEACH Energy Ltd has made an oil discovery with its Kangaroo-1 exploration well in the South Australian section of the Cooper Basin.
Kangaroo-1 intersected a 20 metre gross oil column in the Birkhead Formation. A drill stem test (DST) over the Birkhead Formation (1694.5m to 1712.0 mRT) recovered 41.6 barrels of approximately 52 degree API oil from the drill string following a 3.13 hour flow period.
Beach reporterd that there were no indications of formation water from the DST and suggested that the flow rate can be calculated as 320 bopd. The well will be cased and suspended as a future Birkhead oil producer. The company said the well could be brought into production by Q3 FY17.
Kangaroo-1 is the first well of Beach’s 10 exploration well campaign for for financial year 2017 and is located in ex PEL-91 (Beach 100%) approximately four kilometres north west of the Spitfire Field.
Kangaroo-1 has successfully met the objective to discover stratigraphically trapped oil within the Birkhead Formation. The discovery could be brought into production by Q3 FY17.
Beach CEO Matt Kay said the results from Kangaroo-1 have the potential to expand the prospectivity across the company’s operated Western Flank permits through de-risking Birkhead oil prospects and leads. Two separate follow-up prospects have already been identified in close proximity to the Kangaroo-1 discovery.
“We are extremely excited about this new oil discovery in a permit area 100% owned and operated by Beach,” Mr Kay said.
“The discovery confirms the quality and ongoing prospectivity of our Western Flank acreage and justifies our decision to allocate discretionary capital to these high returning assets. Following this important discovery we will now further assess our FY17 drilling and capital programme.”