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Summary

Beeree 1

BEEREE 1

Santos Ltd, as Operator for the Southwest Queensland Unit, announces a gas flow from Beeree 1, an air drilled gas exploration well in ATP 259P, Queensland. A gas flow of 84,950 cubic metres per day (3.00 million cubic feet per day) was recorded on an open hole flow test.

The flow test was conducted at a depth of 2703m and tested the open hole section from 2654m to 2703m in the Permian Toolachee and Patchawarra Formations. The flow was recorded through a 13mm (1/2) surface choke.

Beeree 1 is located 8 km west of Barrolka-1 and some 50 km north of the Queensland Gas Centre, Ballera.

Commenting, Rod McArdle, General Manager – Queensland Northern Territory said:

The use of new technology has allowed us to delineate gas in an area of the Barrolka Field complex, which suggests a possible resource of several hundred billion cubic feet of gas. This gas is well located with respect to existing infrastructure supplying the major centres of gas demand in Queensland. We will be drilling several other prospects in the area through the remainder of 1997 to firm up these resources.

Beeree 1 is the fifth well to be drilled to assess the maximum size and deliverability of the Barrolka Field complex.

Three wells were drilled in the fields between 1976 and 1994 (Barrolka 1, Barrolka East 1 and Barrolka 2). These wells were drilled by conventional methods which caused damage to the geological formation containing gas and masked the potential of the fields.

Barrolka 3, which was drilled in 1996, tested underbalanced air drilling for the first time in the Cooper Basin. This avoided damage to the formation and achieved a significantly better gas flow rate.

Beeree 1 also utilised air drilling technology to confirm a good gas flow from potentially low quality rock. Beeree 1 intersected 37 feet of gas in the 85-3 Toolachee sand (primary target) and 7 feet of gas sand in the Patchawarra Formation. Drill results confirm a 3,400 acre Beeree structure and indicate the possibility of a much larger structure.

Beeree 1 will be followed by two further air drilled wells with the aim of having a firm understanding of the gas in place by the end of 1997.

The participants in the Beeree 1 well are:

  • Santos Group 58.8625%
  • Delhi Petroleum Pty Ltd 23.2%
  • Boral Energy Resources Ltd 16.5%
  • Gulf Australian Hydrocarbons Ltd 1.2%
  • Oil Company of Australia Ltd 0.2375%

Note to Editors

Conventional drilling uses liquids (called mud) to control a well, clear away cuttings and lubricate the drill bit. Under certain circumstances this can damage geological formations, impeding the flow of hydrocarbons. Air drilling uses air with liquid mist, rather than mud, avoiding these difficulties.