Why the Beach Energy (ASX:BPT) share price is climbing today

The Beach Energy (ASX: BPT) share price is up slightly following a gas discovery at one of its wells. Here’s what the company announced.
The post Why the Beach Energy (ASX:BPT) share price is climbing today appeared first on The Motley Fool Australia. –

The Beach Energy Ltd (ASX: BPT) share price is lifting slightly this afternoon following a gas discovery at one of its wells. At the time of writing, the energy producer’s shares are swapping hands for $1.75, up just 0.12%.

Gas discovery

Investors are eyeing the company’s shares today to gauge its prospect of unlocking future gas supplies.

In today’s announcement, Beach Energy advised that it has discovered gas at the Artisan 1 exploration well, located roughly 30km offshore from the Victoria Otway Basin.

The company used a diamond offshore ocean onyx rig to drill a depth of 2,205 metres. A gas column of 69.5 metres in the Upper Waarre Formation (1,921 metres of measured depth) was found, with a net gas pay of 62.9 metres.

In addition, a secondary target of the Flaxman Formation (1902.8 metres of measured depth) intersected a gas column of 20.9 metres. This included a net gas pay of 4.6 metres.

‘Net pay’ is a common term used in hydrocarbon mining that refers to a portion of reservoir rock that holds economically recoverable gas or oil.

Beach energy owns a 60% interest in the Artisan 1 exploration licence (VIC/P43), with OG Energy controlling the remaining 40%.

What’s next?

The recent spudding marks the start of Beach Energy’s offshore drilling operations. The well is being cased and suspended for now, with the company eyeing for production at a later date.

Once casing is complete, the rig will move to the Geographe field to drill two in-field wells. From there, the rig will continue onto the Thylacine field for the development of an additional four in-field wells. The first gas to be extracted from the new Geographe wells is expected sometime in FY22.

Management commentary

Beach Energy managing director and CEO Matt Kay commented:

Beginning our Otway campaign with two exploration successes is a good result for Beach.

While the Artisan discovery is at the lower end of pre-drill expectations, it is being cased as a future producer. Drilling operations have gone to plan and I want to commend the teams working on the Ocean Onyx for the successful start to the campaign.

About the Beach Energy share price

The Beach Energy share price has gained 60% since this time last year, but is down 3% for 2021. The company’s shares hit a 52-week high of $2.04 in January before treading lower after the Cooper Basin business purchase.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Beach Energy (ASX:BPT) share price is climbing today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!