OPERATIONS

First oil from Kiana

GREAT Artesian Oil and Gas has produced its first crude oil, following testing of the Kiana-1 dis...

First oil from Kiana

The first shipment of 64,700 litres of crude oil - about 407 barrels - was uploaded into tanker trucks and sent to Moomba on Monday for refining and transportation to market, Great Artesian said.

The crude is being produced during testing by operator Beach Petroleum for the joint venture, which comprises Beach (40%), Great Artesian (30%) and Magellan Petroleum Australia (30%).

Production testing in DST-4 of a 1939m to 1948m interval in the Patchawarra Formation started on Saturday and is expected to take one to two weeks to complete, Great Artesian said.

Depending on the results, the production testing facilities will be upgraded to allow for permanent or semi-permanent storage and truck on-loading facilities, chairman Norm Zillman said.

Once the results have been evaluated, the joint venture will consider drilling a Kiana-2 well.

Currently two 880-barrel storage tanks, a gas liquids separator and various well head equipment have been installed at the Kiana-1 site.

A deeper zone, which recovered oil in a formation-testing tool at Kiana-1, may also be tested at the end of this current program. Hole conditions had initially prevented open hole drill stem testing of this interval, the company said.

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