Beach Energy said its Encounter-1 shale gas well in Australia's Cooper Basin has flowed gas at a combined rate of over two million cubic feet per day.
The company has completed a fracture stimulation of Holdfast-1 and Encounter-1, which has confirmed productive shale contributions that will assist in planning the second half of the 2012 horizontal well programme.
Encounter-1 has reported a higher flow rate from fewer fracture stimulation stages - six as opposed to seven - when stimulating the Holdfast-1.
The second phase fracture stimulation resulted in five stages over a 250m section of REM and delivered a peak gas flow of 1.3 million cubic feet per day, which, when combined with the first phase fracture stimulation of the Patchawarra Formation, delivered a peak total flow for the well of up to 2.1 million cubic feet per day.
The Encounter-1 well will be flow tested for approximately four weeks with the aim of better understanding zone contributions by the various REM sections.
Beach Energy managing director Reg Nelson said that with every well drilled and fracture stimulated, the company moves closer to proving up its massive basin centred gas play in the Nappamerri Trough.
"Our unconventional vertical exploration program for 2012 is on time and continues to build momentum," Nelson added.
"This is evidenced by the finishing of the Moonta-1 well, the fracture stimulation of the Encounter-1 well with a significant combined flow rate of over 2 million cubic feet per day, and the Streaky-1 well, which is only a week or so away from total depth."
The company is expecting the return of the Halliburton fracture stimulation spread to the Cooper Basin in September, during which it will undertake the batch fracture stimulation of its deeper vertical wells, Moonta-1, Streaky-1 and Boston-1.
These wells will be drilled to the base of the Patchawarra, about 4km deep and will be fracture stimulated through the whole of the formation in the second half 2012.