Beach Secures Rigs for Unconventional Shale Plays

Beach Energy Ltd has secured two Ensign Australia Pty Ltd rigs, to drill both horizontal and vertical wells targeting its unconventional gas play in the Nappamerri Trough of the Cooper Basin.

From recent drilling results, it is clear that the target zone in PEL 218 (Permian JV: Beach (90% and Operator), Adelaide Energy Ltd (10%) goes beyond shale and incorporates other lithologies that are also gas saturated. Beach believes, that in addition to the substantial shale gas potential, it is now dealing with an unconventional basin centred gas play.

The 2012 program for these rigs will focus on pilot horizontal production wells in both ATP 855P  (Beach - 40% and Operator), Icon Energy Ltd (40%) and Adelaide Energy Ltd (20%) and PEL 218, as well as a series of vertical delineation wells in PEL 218. The program is designed to test the significant potential of the basin centred play in what is now considered a thick, continuous, multi lithology gas accumulation across the PEL 218 permit and potentially ATP 855P.

Beach Managing Director Reg Nelson said, “Beach has started to unlock a significant basin centred unconventional gas play in the Cooper Basin. These two rigs will take us a step closer to understanding the extent of the gas resource that resides within our permits. The horizontal pilot wells to be drilled by Ensign#65 will be production style wells designed to flow gas at commercial rates. Should these wells be successful we will seek to commence a pilot development program as soon as possible.”

Source: Beach Energy