AWE makes substantial gas find at Waitsia

AWE Limited makes substantial gas find at Waitsia

Following on from the recently announced upgrade of 2C Contingent Resources in the Senecio Field, AWE Limited, 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 estimates that the Kingia/High Cliff Sandstone intervals in the Waitsia Field have gross Contingent Resources in the range from 65 billion cubic feet (Bcf) to 1170 Bcf, with a best estimate of 290 Bcf. 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 of 180 Bcf of gas.

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 should be noted that the Kingia/High Cliff Sandstone interval has not been previously penetrated in this part of the basin and represents an exciting new play with significant upside and follow-up potential.

AWE is also evaluating the gas bearing intervals in the Irwin River Coal Measures and Caryniginia Shale which could provide substantial additional unconventional resource potential. AWE estimates that the Irwin River Coal Measures has gross Prospective Resources in the range from 114 Bcf to 1497 Bcf, with a best estimate of 420 Bcf. The presence of a significant quantity of hydrocarbons is indicated by strong gas shows and petrophysical analysis but further evaluation and appraisal would be required to establish whether reservoir productivity will be sufficient for commercial development. At this stage, AWE currently estimates the chance of development at 20%. This risking will change with further appraisal activities. Prospective Resources for the Carynginia Shale have not yet been estimated for this location, but could be substantial.

AWE has cased and suspended the Senecio-3 well in preparation for conventional flow testing of multiple reservoir intervals in the Senecio and Waitsia fields later in 2014. A Waitsia appraisal well is also under consideration for drilling in early 2015 immediately following the drilling of the lrwin-1 exploration well in EP320 (8km east of Senecio). The primary target for the Irwin prospect is the Dongara/Wagina sandstone, but the well will also evaluate the deeper prospective horizons that have been high-graded by the Senecio-3 result.

The conversion of Contingent Resources to Reserves is subject to successful flow testing and a final investment decision for field development. If developed, Senecio/Waitsia will add approximately 30 million BOE, or 33%, to AWE’s 2P Reserves of 91 million BOE as at 30 June 2014.

 

Press Release, September 18, 2014; Image: AWE Limited