Beach to spud Yanerbie-1

THE PEL 110 partners are due to start drilling the Yanerbie-1 oil wildcat this week, Adelaide-based Magellan Petroleum Australia Ltd said yesterday.

The well will be drilled by operator Beach Petroleum using the Century Rig 3.

Yanerbie-1 is 150km north of Moomba in South Australia in exploration permit PEL 110.

The drilling will target reservoirs in the Hutton Sandstone and the Triassic Tinchoo Formation.

This is near a robust structural closure about 20km north of the Keleary oil field where the Tinchoo and Basal Jurassic Poolowanna formations are producing oil.

The Poolowanna Formation at Yanerbie-1 is a secondary target.

The partners expect the well will take about 14 days to drill to a depth of 2554 metres.

Magellan said it has reached agreement with Enterprise Energy NL to farmout a 6.25% interest in the Yanerbie Prospect.

As a result, Magellan’s equity will reduce to 31.25%, but the company will retain a 37.5% interest in the remainder of PEL 110.

But the agreement with Enterprise also gives that company an option to earn a 6.25% in the entire tenement by committing to funding further exploration after Yanerbie-1.

Yanerbie-1 participants: Beach Petroleum Ltd 31% (operator), Magellan Petroleum (Southern) Pty Ltd 31.25%, Cooper Energy Limited 25% and Enterprise Energy NL 12%.