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Beach Energy managing director Reginald George Nelson. Image courtesy of rotaryclubadelaide/Youtube.

Beach Energy confirmed Tuesday that its Balgowan-1 exploration well in Australia’s Cooper Basin holds gross reserves of over 300,000 barrels of oil.

In August, the company confirmed expectations of an oil fairway extension at the well after discovering a nearly 30 foot gross oil interval.

The well, located in license PEL 91, encountered an 11 foot net pay zone in the Namur Sandstone and a 6.5 foot net pay zone in the overlaying McKinlay Member.

Based on these results, Balgowan-1 was cased and suspended as a future McKinlay Member / Namur Sandstone oil producer.

Following preliminary mapping, Beach estimated proved plus probable reserves for the Balgowan field at 344,000 barrels of oil.

“Beach has a high degree of confidence in the commercial productivity of the McKinlay Member / Namur Sandstone reservoirs at Balgowan,” Australia-based Beach Energy said.

Development costs for the Balgowan field are expected to be about $1.3 million pending approval from Beach’s joint venture partner Drillsearch Energy.

Beach Energy holds a 40 percent operating stake in the Balgowan field.

Australia-based Drillsearch Energy holds a 60 percent stake in the field.