Beach Energy Ltd., Adelaide, has outlined an expanded exploration and production program in its Cooper basin acreage for the 2017-18 financial year in which it expects to spend $220-260 million (Aus.). The company previously had forecast a figure of $155 million (Aus.).
Beach Energy has targeted a production figure of 10-10.6 million boe for the next 12 months along with an ongoing goal of at least 10 million boe for each of 2019 and 2020.
Beach Energy is confident of 100% replacement of produced reserves, and hopefully more, through to the end of June 2019.
The planned work program for the next year includes the completion and connection of more than 20 currently cased and suspended wells, production optimisation projects, facility expansions and development drilling. The aim is the offsetting of natural decline and to sustain production levels for the coming 12 months.
On the drilling front, the company plans a 37% increase in its program compared with last year with a total of 78 wells set for 2017-18. As many as 44 of those wells will be exploration or appraisal.
Beach Energy also plans to process and interpret recently acquired 3D seismic data to identify targets for 2019 and beyond.
The program will primarily focus on the core Western Flank oil and gas play fairways as well as the Cooper basin joint venture work operated by fellow Adelaide firm Santos Ltd.
About $160-200 million of the expected $220-260 million expenditure will be on discretionary programs with 35% allocated to Western Flank oil, 35% to Western flank gas, and 25% to the Cooper basin JV.
The remaining $60 million will be fixed expenditure needed for asset maintenance, permit fees, and tenement commitments.
