Beach’s most recent acquisition was a 17.5% interest in VIC/P46, an Otway Basin permit near Portland, Victoria. The operator and major partner Essential Petroleum Resources Ltd has now released a statement claiming that this permit contains a recoverable gas resource in excess of three trillion cubic feet as well as large petroleum reserves.
Essential Petroleum argued that gas shows at Santos’ Callister-1 well in the adjacent VIC/P51 permit bode well for prospects in VIC/P46.
“Our technical team has been extensively mapping the petroleum systems on the continental shelf in VIC/P46 and adjacent areas, including the Callister prospect,” Essential Petroleum said.
“Particular attention has been paid to the distribution of the Waarre Formation within these systems. As demonstrated in the Casino field in VIC/P44, the commercially critical reservoir is better developed down dip and on the flanks of the structures on and around the Cape Bridgewater High. This includes the northern flank of the Fermat prospect in VIC/P46 as well as Callister.
“It is only possible for Essential Petroleum to conclude that Callister was drilled on the crest of a structure that may have 300 to 400 metres of closure at the Waarre level and that gas shows in the well have been encountered. Such a result is encouraging for the potential of VIC/P46.”
Essential Petroleum has begun a seismic survey of 391 linear kilometres in this permit. No offshore wells are planned for this season but the partners are planning two exploration wells in 2005-2006.
Beach’s move into VIC/P46 came just a few weeks after Beach expanded its reserves by 5.8 million boe by taking a 25% farmin interest in Anzon Australia’s Gippsland Basin oil and gas fields – Basker, Manta and Gummy.
Beach also plans to return to offshore Western Australian exploration in coming months, drilling a well in the Carnarvon Basin in joint venture with Santos Ltd and Kufpec Australia Pty Ltd.
Meanwhile back on dry land, Beach has started a five-well program in its Cooper/Eromanga Basin blocks in south-west Queensland.
Three appraisal wells are planned for the mature Kenmore oil field (PL 32) in an infill program.
The first of these, Kenmore-31, is located on the north-western flank of the Kenmore field and will test an undrilled structural culmination identified by 3D seismic. The prospect has mean potential recoverable reserves of 200,000 barrels with a highside of 300,000. Two more wells – Kenmore-31 and 32 – targeting similar sized prospects are planned to follow.
Beach will also drill one well – Bodalla South-15 – in PL 31 chasing mean potential recoverable reserves of 100,000 barrels with a highside of 200,000, and a wildcat well – Coolum-1 – in the Glenvale Block in ATP 269P about six kilometres from the Kenmore field targeting mean potential recoverable reserves of 500,000 barrels with a highside of 1,000,000.
Beach has a 100% stake in PL31 and PL32 (Bodalla South and Kenmore).
Interests in the Glenvale Block in ATP 269P are Beach 33.05%, Mawson Petroleum (a Beach subsidiary) 13.9%, Inland Oil 6.1%, Entek 40% and Gidgealpa Oil 6.95%.
Interests in VIC/P46 are: Essential Petroleum Resources (operator) 57.5%, Mitwell Energy Resources 25% and Beach Petroleum 17.5%.
Meanwhile, Beach has again rewarded shareholders, announcing it would be paying a full cent dividend per share for the year. It had previously announced a half cent dividend for the first half of the year with this latest half cent return taking Beach’s second annual dividend to the full cent mark.
Last year Beach paid a full cent dividend over the two half year periods, and also paid shareholders a special half cent dividend. There would be no special dividend paid this year, according to the company.
