Beach Makes New Gas Find in South Australia

Australian Beach Energy has announced a new gas field discovery in the onshore Otway Basin in South Australia.

It said January 11 that flow test results indicate a “high deliverability reservoir” which provides encouragement to move towards commercialisation. “We are very encouraged by these results, and to witness in the early stage of testing such strong well deliverability from an onshore gas field is particularly pleasing,” Beach’s CEO Matt Kay said.

The discovery at Haselgrove-3 ST1 on state forestry land has a constrained flow rate of approximately 25mn ft3/d with an estimated net gas pay of 34 metres intersected across two primary targets, Beach said.

Early indications suggest that Sawpit Sandstone could flow at greater rates with samples indicating low inert content. The well is currently shut-in with preparations underway for commencement of an initial production test later this month, the company said.

“We look forward to continuing our operations in the Otway Basin and are appreciative of ongoing support provided by the local community. We would also like to thank the South Australian Government for their contribution of the [A]$6 million PACE gas grant, which was a crucial element in Beach’s decision to drill this well,” Kay added.

PACE Gas was designed as part of a suite of measures aimed at increasing investment in local gas production and to ease price pressures in South Australia. Gas extracted through PACE Gas must first be offered to local electricity generators. South Australia is connected to Australia’s gas-hungry east coast market.

Beach said it is planning to undertake “immediate” follow-up testing to confirm well deliverability and assess connected volumes and gas composition.