Ann: BPT secures rigs for shale gas play in Coope, page-9

re: Ann: BPT: BPT secures rigs for shale gas ... Goodaye,
when I read this release, it occurred to me that this was a much more positive, and conciliatory, announcement from Beach.

When the Beach/Icn argument arose, somewhere I recall reading a comment by RJ stating that ICN had trouble negotiatinga ccess/exploration plans etc with Beach, wrt the CSG resource in 218, and I think in 855.

So given that the resolution involved ICN becoming Operator of CSG work in BOTH 218 & 855, and the fact that this latest Beach announcement talks about the unconventional resource potential (ie shale & CSG), I am thinking that the fracas was probably not about money at all, but more about Beach agreeing to a access/co-operation/work programs etc wrt CSG exploration!

Anyway, this announcement surprises me, because it sounds quite bullish for the "unconventional" propspects in these two permits.

ICN origoanlly wanted Beach to use the same wells to search for CSG as for Shale i think, ie conduct DST etc in the same well? saving time and cost effective.

"From recent drilling results, it is clear that the
target zone in PEL 218 (Beach 90%) goes beyond shale and incorporates other lithologies that are
also gas saturated. Beach believes, that in addition to the substantial shale gas potential, it is now
dealing with an unconventional basin centred gas play."

and more:

"The program
is designed to test the significant potential of the basin centred play in what is now considered a thick,
continuous, multi lithology gas accumulation across the PEL 218 permit and potentially ATP 855P."

Rig #65 arrives April 2012 and "Will drill the first horizontal well in ATP 855P to target shale and other lithology target zones."

"Beach Managing Director Reg Nelson said, ?Beach has started to unlock a significant basin centred unconventional gas play in the Cooper Basin. These two rigs will take us a step closer to understanding the extent of the gas resource that resides within our permits. The horizontal pilot wells to be drilled by Ensign#65 will be production style wells designed to flow gas at commercial rates. Should these wells be successful we will seek to commence a pilot development program as soon as possible.?

ANy results and/or pilot production from PEL218 will reflect on ATP855.

its sounding more and more that BPT will be looking to incorporate gas production from shale with gas production from CSG - a "multi lithology gas accumulation" project !!

cheers