The Beach Energy Ltd (ASX: BPT) share price is up 0.6% at time of writing, having earlier posted gains of 1%.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock are currently changing hands for $1.58 apiece.
For some context, the ASX 200 is down 0.1% at this same time, while the S&P/ASX 200 Energy Index (ASX: XEJ) is up 0.4%.
Here's what Beach Energy reported this morning.
New offshore gas discovery
The Beach Energy share price could be in for some longer-term tailwinds after the company announced a gas discovery at its Tarantula Deep 1 project, located in the Perth Basin.
According to the release, Tarantula Deep 1 reached a total depth of 4,121 metres over the weekend. The well intersected a 63-metre gross section of high-quality Kingia Sandstone reservoir. Management said this is comparable to the offset well Beharra Springs Deep 1.
Beach Energy said the well had intersected a gas water contact within the Kingia reservoir, "with net gas pay of 10 metres above the contact confirmed by gas sampling".
Commenting on the discovery that could help boost the Beach Energy share price, interim CEO Bruce Clement said, "Two gas discoveries from our first three operated exploration wells is a great start to the campaign."
Clement added:
The results at Tarantula Deep 1 have improved our understanding of the Kingia reservoir extent in the Beharra Springs area and give us greater confidence in future development and near field exploration within the immediate region.
With gas demand in Western Australia increasing, and further success in our exploration program, we see our Perth Basin business as continuing to grow in importance for the West Coast gas market.
Beach Energy said it to allow for future development of the discovery, with preliminary analysis indicating outcomes in line with pre-drill estimates.
Beach Energy share price snapshot
The Beach Energy share price has gained 3% over the past 12 months and 5% over the past six months.
