The company said while commissioning of the pump is still underway, the upper Patchawarra zone has restarted free flowing at a rate of about 400 barrels of oil per day, with no water.

In early May, the company announced that it planned to install a pump at Kiana-1 after water seepage into the well stopped the free flow of oil from two zones in the Patchawarra Formation.

On Friday, Beach said it initially plans to produce from the upper zone in order to establish its performance over the next two weeks, before restarting production from the lower zone.

“Initial production data indicate that the water ingression was from the lower zone, as the upper zone has recommenced free-flowing oil at greater than expected rates of around 400 barrels of oil per day, with no water,” the company said.

“The pump will now be brought onstream as flowing pressure declines and a sustained production rate of 400 barrels of fluid per day is anticipated in the longer term.”

Once both zones are producing, Beach expects total daily production to reach 800 barrels of fluid.

“At this stage the amount of water cut in the oil from the lower zone remains unknown, however, water separation and handling facilities are in-place to accommodate this,” it said.

The PPL 212 joint venture comprises Beach Petroleum, which holds a 40% stake, Great Artesian Oil and Gas (30%), and Magellan Petroleum (30%).