Australian Beach Energy to Get State Support for Gas Well

Australian Beach Energy will soon start drilling a conventional onshore gas exploration well in the Penola Trough, Otway Basin in South Australia with the support of South Australian government through the Plan for Accelerating Exploration (Pace) gas grant scheme, which aims to bring new gas to market within three years.

Under the terms of the Pace grant, if a discovery is deemed to be commercial, Beach will enter bilateral negotiations with prospective South Australian customers for supply of gas from Haselgrove‐3 at prevailing market terms, the company said March 17 adding that the Pace grant remains subject to formal documentation being agreed.

Beach Energy permits in the onshore Otway Basin (Credit: Beach Energy)

Haselgrove‐3 will be drilled in PPL 62 (Beach 100%) close to Beach’s Katnook gas processing facility and pipeline network, and the SEA Gas transmission system.  The well will target conventional gas and gas liquids in the Sawpit Sandstone Member.  Haselgrove‐3 will not be fractured stimulated. 

Depending on the scope of well design and evaluation program, the A$6mn (US$4.61mn) Pace grant is expected to cover 40‐50% of the estimated cost to drill Haselgrove‐3.  Drilling is expected to commence in 1Q FY18, Beach said.

A similar grant has also been extended to Senex Energy by the South Australian government. Senex Energy will receive A$5.82mn through the Pace Gas Grant Program which the company believes will help it accelerate gas deliveries from its Vanessa field in the Cooper Basin.


Shardul Sharma


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