Beach Seals Tie-In Deal with Senex

- Beach Seals Tie-In Deal with Senex

Friday, August 19, 2011
Beach Energy Ltd.

Beach has signed an agreement with Senex to tie-in the Growler Field (Beach 40%) to the Lycium oil field. It has also agreed with Senex to construct a trunkline from Lycium to the Moomba facility, however, the tie-in of this section remains subject to approval from the South Australian Cooper Basin (SACB) Joint Venture (~Santos Ltd 67%, Beach 20%, Origin Ltd 13%).

It is anticipated that the flowline from the Growler Field will be constructed in two main sections. The first section, directly from the Growler Field to the Lycium oil field, will consist of a six inch flowline with an initial capacity of approximately 8,000 barrels of oil per day. The equity interests for this section of flowline will be Beach 40% and Senex 60%.

Pending approval from the SACB Joint Venture, the main trunkline will service the whole of Beach's operated and non-operated Western Flank acreage and is planned to run between Lycium and the Moomba facility. The capacity of this eight inch trunkline is expected to be in the order of 15,000 barrels of oil per day. The equity interests for this section will be Beach 60% and Senex 40%.

Beach will undertake both the construction and operatorship of the flowlines, with the total cost of approximately $40 million to be effectively shared between Beach and Senex.

These flowlines will provide Beach with access to the Growler Field during times of flooding in much the same way it has for Beach's PEL 92 acreage during the recent flooding events. The second trunkline will also provide for increased production flows from Beach's operated PEL 91 and PEL 92 acreage as a result of recent development, appraisal and exploration success in the area.

The six well approved exploration program set down for PEL 104 and PEL 111 is expected to commence in October 2011, when flood waters are forecast to recede to levels where access can be restored. A number of Birkhead targets have been identified by the Operator which has had an exploration drilling success rate of 80% in the acreage to date.

The tenure of the Beach Operated Western Flank PEL's 91 and 92 have been granted a twelve month extension by PIRSA in acknowledgment that flooding has delayed exploration in the area. It is expected that the flowlines will be commissioned around June 2012.

Oil & Gas Post

Promote Your Page Too
LINK

Senex to Divest Stakes in AU Cooper Basin

- Senex to Divest Stakes in AU Cooper Basin

Thursday, August 18, 2011
Senex Energy Ltd.

Senex announced the farm-out of southern Cooper Basin conventional oil exploration licenses to Ambassador Exploration Pty Limited (Ambassador).

Senex is farming out a 60% interest in PEL 516 Mudlalee Block, a 60 %interest in PEL 516 Rowley Block and a 50% interest in PEL 113 Zulu Block to Ambassador. Notwithstanding the farm-outs, Senex retains 100% of the rights to "unconventional hydrocarbon production" within the Zulu Block and to any petroleum recovered from the Mudlalee and Rowley Blocks from beneath the Poolowanna horizon. Senex will retain Operatorship of each of these licenses.

The Farm-out Agreements have been executed and are subject to specific Conditions Precedent which are in the process of being completed. Details of the farm-out terms follow:

South Australian Cooper Basin License PEL 113 Zulu Block

Ambassador to pay 100% of the drilling cost of one well within the license area and 100% of the cost of acquiring, processing and interpreting 100 square kilometers of 3D seismic over the license area subject to agreed cost limits. On completion of the program, Senex will retain a 50% interest and Ambassador will have earned a 50% interest in Zulu Block production other than unconventional hydrocarbon production from the shale and coal deposits in the Permian sequence. Senex retains the rights to 100% of any unconventional hydrocarbon production from the Permian sequence.

South Australian Cooper Basin License PEL 516 Mudlalee Block

Ambassador to pay 100% of the drilling cost of one well within the license area subject to an agreed cost limit. On completion of the program, Senex will retain a 40% interest and Ambassador will have earned a 60% interest in the Mudlalee Block other than production from deposits that extend beneath the Poolowanna horizon. Senex retains the rights to 100% of any petroleum recovered from deposits beneath the Poolowanna horizon, being the unconventional hydrocarbon zones.

South Australian Cooper Basin License PEL 516 Rowley Block

Ambassador to pay 100% of the drilling cost of one well within the license area subject to an agreed cost limit. On completion of the program, Senex will retain a 40% interest and Ambassador will have earned a 60% interest in the Rowley Block other than production from deposits that extend beneath the Poolowanna horizon. Senex retains the rights to 100% of any petroleum recovered from beneath the Poolowanna horizon, being the unconventional hydrocarbon zones.

Oil & Gas Post

Promote Your Page Too
LINK

Senex Discovers New Oil Field in Cooper Basin

- Senex Discovers New Oil Field in Cooper Basin

Tuesday, June 14, 2011
Senex Energy Ltd.

Senex advised that the Vintage Crop-1 exploration well in South Australian Cooper Basin permit PEL 516 (Senex 100%) has discovered a new oil field with the successful testing of the McKinlay Member.

A gross oil column of 10 meters with a three meter net pay was encountered in the McKinlay Member of the Murta Formation. A Drill Stem Test on the McKinlay Member recovered 39 barrels of 54.6 API, light brown oil in a 3 hour flow period, equivalent to a flow rate of 312 barrels of oil per day. Preliminary interpretation of the Drill Stem Test and wireline log data indicates at least 305,000 barrels of oil in place from this well.

Oil shows were also detected in the Namur Sandstone and the Birkhead Formation. The Namur Sandstone interval will be tested after production casing has been run and coring of the Permian section has been completed.

At present the well is being set up to run the 7" production casing after which the well will be deepened into the Permian sequence to provide a preliminary evaluation of unconventional gas targets in the coals and shales underlying the oil targets.

A 9 meter core will be cut in the coal sequences of the Toolachee Formation and four 9 meter cores will be cut in the shale sequences of the Roseneath and Murteree Shales. The Toolachee Formation is over 100 meters thick and the Roseneath and Murteree Shales are expected to be at least 100 meters thick.

Senex will run a specialized logging suite to help determine the minerals present in the shales. Subsequently, the cores will be used for desorption tests to determine gas and hydrocarbon liquids contents, and to evaluate porosity, permeability and mechanical properties.

Senex Managing Director Ian Davies said, "This very pleasing result from the oil targets for Vintage Crop-1 in Senex's 100% owned PEL 516 further underpins the rationale for the acquisition of Stuart Petroleum, and the oil discovery will pay for the testing of the unconventional gas targets in the underlying coals and shales."

Vintage Crop-1 is located approximately 65 kilometers south east of Moomba, close to Santos' oil-producing Narcoonowie and Caroowinnie fields.

Oil & Gas Post

Promote Your Page Too