Beach Energy Ltd

BPT Details

Development at Cooper and Eromanga basins: Bauer-26 was drilled as a horizontal oil development well comprising a lateral section of approximately 400 meters. The well targeted the McKinlay Member, a thin sandstone overlaying the Namur Sandstone, with accumulations covering areas larger than the Namur fields. The McKinlay Member is a proven oil reservoir, however has not been subjected to focused development. The formation is considered suitable for geo-steered horizontal drilling, with potential for high daily production rates. Bauer-26, the first Western Flank horizontal well, was landed successfully within the McKinlay Member and intersected net oil pay of approximately 350 meters.The well was completed for production and is expected to be on free flow production in Q1 FY18, with artificial lift scheduled for installation in Q2 FY18. Well results and other studies currently underway will set the scope and design for development of the McKinlay reservoir in H2 FY18 and FY19.

Western Flank Oil – ex PEL 91: A two-well oil appraisal campaign was completed in the Chiton Field, located approximately two kilometers south of the Bauer Field. The campaign was designed to appraise the extent and productivity of the McKinlay Member to the south and east of currently producing wells, where there has been limited appraisal drilling to date. The second well of the campaign, Chiton-5, was plugged and abandoned due to lack of commercial pay. Both wells were step-out prospects which helped define field boundaries, and results will assist with design of the final development plan for the Chiton field. BPT expects FY18 production to be 10.0 - 10.6 MMboe, and targeting >10 MMboe production in FY19 and FY20. We reiterate a “Buy” recommendation on the stock at the current market price of $0.65


BPT Daily chart; (Source: Company reports)

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