Beach Energy/Drillsearch report huge increase in reserves
Bad news, investors. SELL YOUR STOCK NOW !!!!! hahahahahah Thanks to the losers who sold their stock last week to me. Beach Energy/Drillsearch reported today HUGE increases in reserves for the new discoveries this year at Stunsail and Pennington. JUNE 2, 2014 STUNSAIL-1 RESERVES ESTIMATION 2P gross oil reserves for Stunsail-1 are estimated to be 1.6 MMbbls Beach Energy Ltd (ASX: BPT, "Beach") advised on 28 March 2014 that the Stunsail-1 exploration well in PEL 91 (Beach 40% and operator, Drillsearch Energy Ltd 60%) discovered stacked oil pools within the McKinlay member, Namur Sandstone, Mid-Namur Sandstone and Birkhead Formation reservoirs. Stunsail-1 intersected a four metre oil column within the McKinlay member and a six metre oil column in the Namur Sandstone primary target reservoir. An additional four metre oil column was also intersected within the Mid-Namur reservoir. Oil shows were encountered in the Birkhead Formation, with two intervals tested. The first drill stem test (“DST”) tested a 15 metre interval, and recovered 46 barrels of oil and three barrels of filtrate over a four hour period, equating to a test rate of in excess of 250 barrels of oil per day. As a result of proving oil within multiple reservoirs, Stunsail-1 was cased and suspended as a future oil producer. Pending joint venture approval, Beach anticipates the Stunsail field to be developed during the 2015 financial year. Conceptual development plan New requirements under Chapter 5 of the ASX Listing Rules require that oil and gas companies reporting on hydrocarbon accumulations must detail the conceptual development plan for the discovery. McKinlay-Namur analysis Commercial productivity of the McKinlay and Namur reservoirs is proven in offset fields within PEL 91. The Stunsail discovery is analogous to the commercial offset fields including Bauer, Chiton, and Hanson. As such, Beach has a high degree of confidence in the commercial productivity of the McKinlay-Namur reservoirs at Stunsail-1. Beach has carried out a preliminary economic evaluation of the project using costs based on analogous projects and internal company oil price assumptions to confirm its commercial viability. Beach believes that Stunsail-1 can be developed using a standalone production facility, with oil potentially transported by truck to either the Bauer facility or the Lycium hub. Should there be further exploration and appraisal success in the proximity of Stunsail-1, this discovery has the potential to be developed with other fields in the same area through a pipeline to other facilities in PEL 91. PENNINGTON FIELD RESERVES ESTIMATION 2P gross oil reserves for the Pennington field have increased from 1.7 MMbbls to 2.7 MMbbls following the successful drilling of Pennington-2 and Pennington North-1. Beach Energy Ltd (ASX: BPT, "Beach") advised on 7 May 2014 that the Pennington-2 appraisal well in PEL 91 (Beach 40% and operator, Drillsearch Energy Ltd 60%) was cased and suspended as a future McKinlay/Namur oil producer. Pennington-2 was drilled approximately 250 metres south west of the Pennington-1 oil discovery, and intersected 10 metres of net oil pay within the target McKinlay and Namur reservoirs. The Mid-Namur reservoir, which hosts a separate oil pool, was also intersected 2.7 metres above the field oil water contact. The next well drilled in the campaign was the Pennington North-1 exploration well, located approximately 600 metres north of Pennington-1. This well was designed to test a sub culmination of the greater Pennington structure. The primary target Namur reservoir was intersected five metres low to prognosis, with both the McKinlay and Namur target reservoirs water bearing, based on wireline logs. Strong oil shows were encountered over the Birkhead Formation and tested by an open hole drill stem test (“DST”). The test recovered 22 barrels of oil and approximately 10 barrels of water, mud and filtrate over a four hour flow period. The estimated rate from the DST was 125 barrels of oil per day. Based on the results of this test, Pennington North-1 was cased and suspended as a future Birkhead oil producer. Reserves for the Pennington field were updated with preliminary mapping that included results from Pennington-2 and Pennington North-1. This update resulted in a 2P gross reserves addition of one million barrels of oil (“MMbbls”). Conceptual development plan New requirements under Chapter 5 of the ASX Listing Rules require that oil and gas companies reporting on hydrocarbon accumulations must detail the conceptual development plan for the discovery. McKinlay-Namur analysis ommercial productivity of the McKinlay and Namur reservoirs is proven in offset fields within PEL 91. The Pennington field is analogous to the commercial offset fields including Bauer, Chiton, and Hanson. As such, Beach has a high degree of confidence in the commercial productivity of the McKinlay-Namur reservoirs at Pennington. Beach has carried out a preliminary economic evaluation of the project using costs based on analogous projects and internal company oil price assumptions to confirm its commercial viability. Beach believes that the Pennington field can be developed with a tie-back of producing wells via a common flow line to the Bauer production facility. Pending joint venture approval, and dependant on results from further appraisal drilling, it is anticipated that the development of Pennington will: • Cost approximately $6 million; and • Take place in the June quarter 2015. Using a proposed tie-back development model, Beach estimates preliminary gross undeveloped reserves from the McKinlay, Namur and Mid-Namur reservoirs as follows: 1P 1.5 MMbbls 2P 2.7 MMbbls 3P 5.3 MMbbls Pending joint venture approval, and dependant on results from further exploration, appraisal and development drilling, it is anticipated that the development of a standalone facility for the Stunsail field will: • Cost approximately $4 million; and • Take place in the June quarter 2015. Also pending joint venture approval is Stunsail-2, an appraisal well that is scheduled to be drilled in the September quarter 2014. Using a standalone development model, Beach estimates preliminary gross undeveloped reserves from the McKinlay, Namur and Mid-Namur reservoirs as follows: 1P 1.0 million barrels of oil (“MMbbls”) 2P 1.6 MMbbls 3P 2.5 MMbbls