Beach will acquire a 50% interest in PEP 160, next to the South Australian-Victorian border, under an agreement with joint venture partners Santos and Origin Energy to pay part of the Lindsay-1 exploration well drilling costs.
With drilling planned for 2006, Lindsay-1 will test the gas potential of the Pretty Hill Sandstone in a prospect 30 kilometres southeast of Penola, said Beach.
“Any discovery in the tenement has potential to be commercialised through either the nearby SEAGAS pipeline to Adelaide or the Katnook gas gathering facility just over the border near Penola,” Beach Petroleum managing director Reg Nelson said.
Beach’s current activities in western Victoria include gas drilling in PEP 154 near Warrnambool and a 17% interest in the offshore VIC/P46 licence, near Portland, abutting the coast directly south of PEP 160. Here the joint venture is targeting several large structures identified in the near-shore portion of the permit.
Acquisition of 3D seismic is being considered in VIC/P46 early next year, with drilling expected by late 2006 or early 2007.
Subject to regulatory approvals, interest holders in PEP 160 will be: Beach Petroleum (operator and 50%), Santos Limited (30%) and Origin Energy (20%).
