Australian oil and gas company Beach Energy has made a new gas discovery at its Enterprise 1 exploration well in the Victorian Otway Basin in Australia.

The new gas was found at Enterprise 1 well in licence VIC/P42(V), in which Beach holds 60% stake and is the operator. The remaining 40% interest in the licence is owned by O.G. Energy.

Beach said that the Enterprise 1 well was spud from an onshore site near Port Campbell and 8km from the Otway Gas Plant.

The company has drilled the well using an extended reach drilling (ERD) approach to a total depth of 4,974 metres measured depth (MD).

It has encountered the primary reservoir target of the Upper Waarre Formation 89 metres high to prognosis at a depth of 4,594m (MD).

The drilled well intersected a 146 metre of gas column in the Upper Waarre Formation, including 115 metres of net gas pay with no gas-water contact found.

Beach said that the sampling indicated a gas composition with 10% carbon dioxide by volume.

Beach Energy managing director and CEO Matt Kay said: “To have our first exploration well in the Victorian Otway program deliver a successful result is an excellent outcome for the business.

“This success enhances our plans to develop more supplies for the East Coast gas market. The Enterprise result also de-risks other nearby prospects, warranting their evaluation as potential future drilling candidates.”

Enterprise 1 will undergo well test to confirm productivity

The company said that it is planning to case and suspend the well as a future producer.

The Enterprise 1 will undergo a well test to confirm its productivity and provide data for the proposed pipeline to the Otway Gas Plant.

The engineering work and regulatory approvals process for the pipeline is already underway.

Recently, Red Sky Energy has entered into an agreement (SPA) to acquire Beach Energy’s stake in the Killanoola oil field in South Australia.