- Shares in Beach Energy (BPT) are soaring today after the company made a gas discovery at its Enterprise 1 well in the Victorian Otway Basin
- The well was spud from an onshore location near Port Campbell and the Otway Gas Plant and was drilled to just under 5000 metres
- Drilling intersected a 146-metre gas column in what’s known as the Upper Waarre Formation
- The company now plans to case and suspend the well as a future producer as it takes on a well test to confirm its productivity
- Shares in Beach Energy are trading over 15 per cent higher this afternoon and currently worth $1.44
Shares in Beach Energy (BPT) are soaring today after the company made a gas discovery at its Enterprise 1 well in the Victorian Otway Basin.
The oil and gas explorer told shareholders Enterprise 1 was spud from an onshore location near Port Campbell and the Otway Gas Plant.
Beach drilled the well to just under 5000 metres and intersected a 146-metre gas column in what’s known as the Upper Waarre Formation. This included 115 metres of net gas pay with no gas-water contact found.
The company said sampling indicated a gas composition with 10 per cent carbon dioxide by volume.
Beach Managing Director and CEO Matt Kay said he is pleased to see the Otway campaign build on its early success.
“To have our first exploration well in the Victorian Otway program deliver a successful result is an excellent outcome for the business,” Matt said.
“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,” he said.
Looking ahead, Matt said the company’s focus is now moving on to the Otway Basin drilling campaign, which is slated to begin in the March quarter of 2021.
“The first well drilled will be the Artisan 1 exploration well, followed by development wells in the Geographe and Thylacine fields,” Matt explained.
As for Enterprise 1, Beach said the plan is now to case and suspend the well as a future producer. Beach will take on a well test to confirm its productivity and provide some data for the proposed pipeline to the Otway Gas Plant.
The company said engineering work and regulatory approvals for the pipeline are already underway.
Meanwhile, Beach plans to release a volumetric estimate for the Enterprise discovery before its 2021 financial year half-yearly results in February 2021.
Investors are flocking to Beach Energy following today’s news, with company shares currently trading 15.6 per cent higher. At 1:47 pm AEDT, BPT shares are worth $1.44 each.