AWE claims new onshore gas discovery in WA
THE ROADHOUSE BOWSER: AWE Limited (ASX: AWE), as Operator of the L1/L2 Joint Venture, announced initial Contingent Resource estimates for the Waitsia discovery (formerly Senecio Deep) located in the north Perth Basin.
After initial analysis of data from the Senecio-3 well, and the existing 3D seismic, AWE has estimated the Kingia/High Cliff Sandstone intervals in the Waitsia Field have gross Contingent Resources in the range from 65 billion cubic feet (Bcf) to 1170Bcf, with a best estimate (2C) of 290Bcf.
The company explained the presence of a significant quantity of potentially moveable hydrocarbons is indicated by strong gas shows, petrophysical analysis and pressure data.
Net to AWE, the combined Senecio and Waitsia fields represent a best estimate (2C) of 180Bcf of gas.
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Location Map for the Senecio and Waitsia fields. Source: Company announcement
“This is a fantastic result for AWE, the local Mid West community and for the people of Western Australia,” AWE managing director Bruce Clement said in the company’s announcement to the Australian Securities Exchange.
“The discovery in the deeper Kingia and High Cliff Sandstones has opened up an exciting new and substantial gas play in the north Perth Basin.
“AWE believes the Senecio/Waitsia discovery could represent the largest onshore conventional gas discovery in Western Australia since the Dongara gas field was discovered in the 1960s.
“Initial evaluation of the Senecio and Waitsia fields has identified 360Bcf of gross Contingent Resources, which could be brought onto early production, utilising existing gas plant and pipeline infrastructure just seven kilometres from the Senecio-3 location.
“There is also substantial upside to this initial estimated gas volume that could be realised by successful appraisal of the Waitsia discovery and exploitation of the unconventional gas potential identified in the Carynginia Shale and the Irwin River Coal Measures.
“We are now focusing on flow testing of Senecio-3 to establish commercial viability and the potential early, low cost development of the Senecio and Waitsia fields.
“If successful, this could deliver significant additional gas into the Western Australia domestic market and provide substantial value to AWE shareholders.”
AWE said further evaluation and appraisal will be required to more accurately define the size of the accumulation and the lateral extent of the conventional and tight gas bearing sands.
It also noted that the Kingia/High Cliff Sandstone interval has not been previously penetrated in this part of the basin and considers this to represent a new play with substantial upside and follow-up potential.
The Joint Venture partners in L1/L2 are: AWE Limited (Operator) 50 per cent and Origin Energy Resources (ASX: ORG) 50 per cent.
Email: awe@awexplore.com
Website: www.awexplore.com