Beach Energy has found a new gas field at Haselgrove-3 ST1 in Otway Basin, South Australia.

After the results of the flow test from the primary target Sawpit Sandstone showed a reservoir with high deliverability, Beach now plans to take up further follow-up testing to ensure well deliverability and analyse the volumes & gas composition.

This reservoir is located on state forestry land in PPL 62 and is approximately 8km south of Penola.

Haselgrove-3 ST1 was drilled to a total depth of 4,331m and targeted the Sawpit Sandstone and shallower Pretty Hill Sandstone.

The well found an estimated gross gas column of 104m in the Sawpit Sandstone, with estimated net pay of 25.6m. The company also intersected an estimated gross gas column of 11.6m in the shallower Pretty Hill Sandstone, with estimated net pay of 8.5m.

“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.”

An initial testing at the Sawpit Sandstone was taken up for preliminary assessment of well deliverability and gas composition. A cased hole test was done over the 4,023m to 4,185m interval. This test saw a sustained gas flow at a rate of 25mmscfd for more than 100 minutes through a 36in/64in choke and at 2,700 pounds per square inch well head pressure.

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Flow rates were, however, restricted to 25mmscfd because of the size of completion tubing (27in/28in).

Initial indications suggest that flow rates could be more than 25mmscfd. Sample analysis show that the gas has low inert content.

The well is currently in shut-in mode. Preparations are being taken up to commence initial production test (IPT) later this month.

The IPT will enable the firm to confirm both well deliverability and gas composition, and undertake further planning for the field development. The results will be integrated with other subsurface data to estimate the size of the gas resource.

Beach’s 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. We would also like to thank the South Australian Government for their contribution of the $6m PACE gas grant, which was a crucial element in Beach’s decision to drill this well.”