BEACH ENERGY DISCOVERS NEW GAS FIELD IN OTWAY BASIN, SOUTH AUSTRALIA

January 11, 2018

Beach Energy announced a new gas field discovery at Haselgrove-3 ST1 in the onshore Otway Basin, South Australia. Flow test results from the primary target Sawpit Sandstone indicate a high deliverability reservoir and provide encouragement to move towards commercialization of a large gas resource. Beach plans to undertake immediate follow-up testing to confirm well deliverability and assess connected volumes and gas composition. Haselgrove-3 ST1 is located on state forestry land in PPL 62 (Beach 100%), approximately eight kilometres south of Penola. Haselgrove-3 ST1 was drilled as a deviated well to a total measured depth of 4,331 metres and targeted the Sawpit Sandstone and shallower Pretty Hill Sandstone. The well intersected an estimated gross gas column of 104 metres in the Sawpit Sandstone, with estimated net pay of 25.6 metres. An estimated gross gas column of 11.6 metres was also intersected in the shallower Pretty Hill Sandstone, with estimated net pay of 8.5 metres. Initial testing of the Sawpit Sandstone was undertaken to enable preliminary assessment of well deliverability and gas composition. A cased hole test was undertaken over the 4,023 – 4,185 metre interval and flowed gas at a rate of 25 million cubic feet per day (MMscfd). Flow rates were constrained to 25 MMscfd due to the size of completion tubing (2 7/8”). Early indications suggest the Sawpit Sandstone could flow at rates greater than 25 MMscfd. Preliminary gas sample analysis indicates low inert content, which should minimise gas processing requirements. The well is currently shut-in with preparations underway for commencement of an initial production test in late January 2018. (Source: Beach Energy)