Drilling operations for Encounter-1 (Beach 90%), the first of a two well, back-to-back exploration program targeting shale gas potential in the South Australian portion of the Nappamerri Trough, have continued to progress well with encouraging preliminary results.

Across the Nappamerri Trough, the objective Roseneath, Epsilon and Murteree formations have the potential to contain gas in place in excess of 200 TCF. The top of this objective zone was reached in the well on 12 November at a depth of 3078 metres. Gas shows monitored during the drilling of the Roseneath Shale are higher than encountered in nearby wells and high gas shows were also recorded whilst drilling the overlying Toolachee and Daralingie formations. The significance of these encouraging gas shows will be further investigated by the extensive wireline logging program to be carried after total depth for the well has been reached.

A 19.3 metre core has been successfully cut and retrieved from the upper section of the Roseneath Shale. Inspection of the core indicates a hard, dark grey shale section has been encountered. Samples from the core have been taken for extensive laboratory tests to investigate the gas content and rock properties of the shale. The remaining core will be transported back to Adelaide for further intensive sampling and evaluation.

Drilling operations have recommenced in the Roseneath Shale and will continue to the next core point. Two further cores are planned, one in each of the Epsilon Formation and Murteree Shale.

The results thus far are encouraging and consistent with expectations that the shales of the Nappamerri Trough are considered to share many of the attributes of the prolific shale gas producing provinces of the USA.

Tags: Beach Petroleum Limited