Haselgrove-3 ST1 is located about 8km south of Penola, on state forestry land in PPL 62, which is 100% owned by Beach Energy.

The well was drilled as a deviated well to a depth of 4,331m, targeting the Sawpit Sandstone and the Pretty Hill Sandstone.

Beach Energy said that the results of the flow test results from the primary target Sawpit Sandstone reveal the possibility of a high deliverability reservoir. The results are also encouraging enough to carry out commercialization of a large gas resource, said Beach Energy.

The Australian oil and gas company is looking to immediately launch a follow-up test to confirm well deliverability and to assess connected volumes and gas composition.

Beach Energy said that the Haselgrove-3 ST1 well encountered an estimated gross gas column of 104m in the Sawpit Sandstone with the net pay estimated to be of 25.6m.

In the shallower Pretty Hill Sandstone, the well intersected an estimated gross gas column of 11.6m with the net pay estimated to be of 8.5m.

Beach Energy revealed that the Haselgrove-3 ST1 well has been currently shut-in with preparations in progress to begin an initial production test (IPT) later this month.

Well deliverability and gas composition are expected to be confirmed by the IPT. The test will also help in field development planning.

Beach Energy said that the ITP results will be integrated with other subsurface data for estimating the size of the gas resource.

Beach Energy CEO Matt Kay said: “We are very encouraged by these results, and to witness in the early stage of testing such strong well deliverability from an onshore gas field is particularly pleasing.

“We look forward to continuing our operations in the Otway  Basin and are appreciative of ongoing support provided by the local community.”

Kay added that the South Australian government’s PACE gas grant was a crucial element in the company’s decision to drill the Haselgrove-3 ST1 well.

In July 2017, Beach Energy along with Senex Energy made an oil discovery on the Western Flank of the Cooper Basin in the Birkhead Formation in the ex PEL 104 license.

Image: Map showing the location of the Haselgrove-3 ST1 well. Photo: courtesy of Beach Energy.