Beach Delivers Australia's First Shale Gas Well

Beach Energy Limited has reported a gas flow of up to 2 million standard cubic feet per day (MMscf/d) has been achieved from Holdfast-1 exploratory shale gas well.

Holdfast-1, the first well drilled to examine the shale gas potential of the thick Roseneath-Epsilon-Murteree shale sequence in PEL 218 in South Australia’s Cooper Basin, is a vertical data gathering well that was recently flow stimulated in seven stages.

Beach reports the gas flow rates, now measured, have remained steady at around 1.8 MMscf/d.

The company said that it regards the flow rates as significant, given the potential for higher flow rates from future horizontal wells. Follow up wells are planned to be drilled to target the optimal producing zone identified by the extensive coring, stimulation and testing program which has been undertaken by Beach in the Nappamerri Trough.

Beach Managing Director, Reg Nelson, said, “We are delighted and excited by this initial flow rate from Holdfast-1. So far the results give us confidence that these shale target zones, which underlie the conventional oil and gas bearing formations in the Cooper Basin, will significantly increase the natural gas potential of this area. It is still early days but this flow rate looks to be very significant.”

Mr Nelson added, “While these results are preliminary at this stage, it does suggest that significantly larger flow rates may be achievable in an optimally designed, pilot horizontal well. Holdfast-1 was deliberately designed to allow us to experiment with different stimulation techniques and to test different zones within a thick sequence of shales and other lithologies to determine which approach could be applied for the best results when designing a pilot production well.”

Beach is operator of PEL 218 and holds a 90% stake, with Adelaide Energy Limited holding the remaining 10% interest.

Source: Beach Energy Ltd.