Beach Energy completes first Cooper Basin Shale gas well in South Australia, plans fracturing

Source: Beach Energy

Beach Energy has completed drilling operations for Encounter-1 (Beach 90%) in Australia's Cooper Basin. This is the first of a two-well, back-to-back exploration program targeting shale gas potential in the South Australian portion of the Nappamerri Trough.

A total of five cores were taken in Encounter-1, and these are currently being analyzed for gas content, physical and mechanical properties.

Encounter-1 intersected 30% more target section than predicted, and the interval appears to be gas saturated with no evidence of water through and into the underlying Patchawarra Formation. This is a best case scenario for fracture stimulation as the thicker interval and absence of water reduces the risk of fracturing into zones that may produce formation brines.

An eight zone fracture stimulation treatment is planned for Encounter-1 early in the second quarter of 2011, once the second shale gas well, Holdfast-1, has been drilled. The rig is currently moving to the Holdfast-1 location



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