AWE’s Waitsia project exceeds pre-production estimates

AWE Limited, operator of the Waitsia gas project in Western Australia production license L1/L2, said that well performance from Stage 1A of the Waitsia gas project has exceeded pre-production expectations over the first three months of operations.

Stage 1A of the Waitsia gas project commenced production in August 2016 from the Senecio-3 discovery well and the Waitsia-1 appraisal well, connected to the Xyris production facility and then into the Parmelia pipeline.

The Senecio-3 well, currently producing from the Kingia Formation, is performing better than preproduction expectations, which were based on well test results recorded in March 2015.

AWE said it has observed an improvement in well productivity that suggests the well has cleaned up and is connected to a significant gas volume in high quality reservoir.

The Waitsia-1 well is currently flowing from the High Cliff Sandstone (HCSS) and has exceeded the upper end of pre-production estimates, AWE said.

An independent review of Stage 1A well performance by RISC Advisory has determined that preliminary results from the two zones under test at Senecio 3 and Waitsia-1 indicate an accessed gas in place volume of approximately 100 Bcf or greater.

The preliminary results also suggest the 2P connected volumes from Senecio-3 and Waitsia-1 are consistent on a per well basis with RISC’s overall assessment of Waitsia gross 2P Reserves of 460 Bcf of gas, which is 34 percent higher than AWE’s current gross 2P Reserves estimate for Waitsia of 344 Bcf of gas.

The Waitsia gas project is operated by AWE that holds a 50 percent stake in the project located in production licence L1/L2 in the onshore Perth Basin, Western Australia, approximately 367 km north of Perth and 16.5 km east-southeast of Dongara. The remaining 50 percent stake is owned by Origin energy.