Two tests were conducted and achieved stabilised flow rates between 400 and 800 barrels per day. Over the 10-day testing period, total oil production was 4959 barrels at an average rate of 496 barrels a day. There was no water production.

Kiana-1 is about two kilometres southwest of the Muteroo oil field, 2km northeast of the Spencer oil field, and 35km west of Moomba.

The well is now shut in for a pressure buildup period of up to one week.

“The short term production test will be analysed and the results, including any impact on reserves estimates are expected to be announced during late December,” Beach Petroleum said.

“Following the completion of the pressure buildup, the joint venture intends to return the well to production at a target rate of 400 barrels oil per day. Government approvals to continue Kiana-1 production have been received and the necessary engineering design and installation for an extended production test is currently being progressed.”

Beach said it expected production would resume during December. Further plans for the perforation of a deeper Patchawarra oil sand and the installation of artificial lift in early 2006 were also being developed.

Participants in Kiana-1 are: Beach Petroleum Ltd (operator) 40%, Great Artesian Oil and Gas Ltd 30% and Magellan Petroleum Australia Ltd 30%.