Operator Beach Petroleum is using the Century Rig 3 to drill the well to a planned total depth of 2020 metres.

Designed to appraise the Kiana oil field, Kiana-2 will address a potential 520,000 barrels (mean) to 870,000 barrels (1P) of recoverable oil.

The joint venture also hope results from the well will provide more information on the physical extent of the Kiana oil field by testing a local structural high (sub-culmination) about 600m to the west-southwest of Kiana-1.

The Kiana-2 location is also designed to optimise additional production, which otherwise cannot be accessed by Kiana-1.

Beach, Great Artesian and Magellan discovered the Kiana oil field last year, when the Kiana-1 discovery well flowed about 1100 barrels of oil per day (bopd) on drill stem test. The well was subsequently put on extended production testing and up until the end of July had produced more than 72,000 barrels of oil from two Patchawarra Formation sandstone intervals.

Currently it is flowing about 400bopd on artificial lift from the uppermost of the two producing zones, with production from the second zone to restart shortly.

Kiana-2 will primarily target the equivalent producing sandstone intervals of the Patchawarra Formation in Kiana-1. Secondary potential exists within the overlying Namur Sandstone, Birkhead Formation, and the Hutton Sandstone.

Following Kiana-2, the rig will move immediately to Keeley-1, a gas/condensate exploration target located about 6km north.

Beach holds a 40% working interest in Kiana, while Great Artesian and Magellan each hold 30%.