Beach secures rigs for Cooper Basin

JETT RINK: Oil and Gas exploration and development company, Beach Energy has secured two rigs, an Ensign#65 and Ensign#16, for its unconventional shale gas appraisal program in the Nappamerri Trough of the Cooper Basin for 2012.

The drilling program that will utilise the two rigs will consist of both horizontal and vertical wells across the Beach permits.

Recent drilling results have demonstrated the target zone in PEL 218 (Beach 90%) goes beyond shale and incorporates other lithologies that are also gas saturated.

Beach said that it is convinced, that in addition to the substantial shale gas potential, it is now dealing with an unconventional basin centred gas play.

The 2012 program is designed to test the potential of the basin centred play in what Beach now considers to be a thick, continuous, multi lithology gas accumulation across the PEL 218 permit and potentially ATP 855P.

The Ensign#65 (ADR1500) rig is a new build 1,500 horsepower rig out of Canada and the United States which is expected to arrive around April 2012.
 
The rig uses the latest proven technology being used for drilling horizontal wells in the Haynesville shale province in the US.

It will be built to meet Australian standards and conditions and has the capability to drill 1,500 metre laterals from a depth of 4,000 metres and will drill the first horizontal well in ATP 855P to target shale and other lithology target zones.

Upon completion of this well, the rig will commence the horizontal pilot well program in PEL218, with two pilot horizontal wells planned adjacent to Holdfast-1 and Encounter-1.

The Ensign#16 is a 1,200 horsepower rig used to drill Holdfast-1 and Encounter-1. It is currently in the Officer Basin and expected to be available around January 2012.

The Ensign#16 will drill a series of vertical wells in PEL 218 to continue the evaluation of the continuous basin centred gas play in the permit.

“Beach has started to unlock a significant basin centred unconventional gas play in the Cooper Basin,” Beach Energy managing director Reg Nelson said in the company’s announcement to the Australian Securities Exchange.

“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.”