Beach Energy Ltd.’s Western Flank oil business in the Cooper Basin is driving group revenue towards $1 billion by the end of the financial year. The excellent financial and operational results for the year to date, revealed in the company’s recent quarterly report, are heavily underpinned by the impressive Western Flank oil business.
Managing director Reg Nelson said Beach has spent many years investing in the Western Flank of the Cooper Basin, which is now delivering significant returns for its shareholders.
“It takes time to build the proprietary knowledge we have in-house to deliver the success we are generating today from our operated Western Flank oil business. It is this knowledge that we will apply to new exploration areas, such as the Tookoonooka permit on the Eastern Flank of the Cooper Basin,” Nelson said.
“I am pleased to announce today that one of our operated permits, PEL 91, recently produced its five millionth barrel of oil.
“Also during the quarter in PEL 91, the Bauer Field estimated ultimate recovery was increased by over 20%, to almost 13 million barrels, making it our largest Western Flank oil field.
Given it was only discovered 18 months ago, the potential of this permit and others we hold in the Cooper Basin is very clear.”
Reserves expansion, exploration success (such as the recent Stunsail-1 discovery) and infrastructure expansion are the main drivers behind Beach solidifying its position as Australia’s largest onshore oil producer.
Beach’s Western Flank net oil production continues at more than 10,000 barrels of oil per day, with the last quarter delivering record operated oil production out of the Cooper Basin. Production of all products was higher when compared to the same period last year.
Beach maintains an exceptionally strong financial position, with quarter end cash reserves up 6% to $428 million and an undrawn debt facility of $300 million.
Beach’s work to unlock deep gas in the Nappamerri Trough is progressing well.
Evidence to date has confirmed the continuous nature of a basin centred and shale gas play, with gas flowing from multiple sections of the Permian target zone.
In recognition of these results, the South Australian Government has offered the joint venture petroleum retention licences over the whole of PEL 218, securing tenure initially for up to 15 years. If the project proceeds to development, tenure would be further extended by conversion to production licences.
This work, along with the conventional gas drilling program with Santos and Origin in the Cooper Basin, underpins Beach’s strategy of being an independent upstream gas producer to the East coast gas market.
With East coast gas demand expected to triple over the coming years, Beach is well positioned to be a part of this growth.
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