AWE Limited (ASX: AWE) provides the following update on the company’s 2P Reserves and 2C Contingent Resources as at 1 December 2017, with specific reference to the Waitsia Field, located in Production Licences L1/L2, onshore northern Perth Basin, Western Australia.
Waitsia Gas Project (AWE 50%, Operator)
Following the excellent results from the Waitsia-3 and Waitsia-4 appraisal wells and the record flow-rates observed in well tests undertaken in October/November 2017, AWE has increased its share of 2P Reserves in the Waitsia Field by 80%.
The increase in the field 2P Reserves to 820 PJ gross is due to the reclassification of 2C Contingent Resources, previously held for the southern extension of the field and an improvement in the observed Kingia sandstone reservoir quality and thickness. Ongoing analysis of the well test data has further validated the independent expert assessment undertaken by RISC Operations Pty Ltd, announced on the 14 November 2017.
The Waitsia-3 and Waitsia-4 appraisal wells have confirmed the presence of better quality reservoir and provided additional confidence in the resource with static and dynamic reservoir models used for production forecasting and future well phasing. The results of the appraisal wells have also identified additional near-field exploration targets that in a success case may provide material further extensions to the Waitsia Field.
AWE’s CEO and Managing Director, Mr David Biggs, said:
“Recent appraisal drilling and outstanding flow test results from Waitsia-2 (39 MMscf/d), Waitsia-3 (50 MMscf/d) and Waitsia-4 (90 MMscf/d) have confirmed that Waitsia is a world class onshore gas field.
“Our internal analysis highlights substantially higher recoverable hydrocarbons and additional production potential from the excellent quality conventional reservoirs in the Kingia and High Cliff Sandstones that closely correlates with the independent review recently completed by RISC,” he said.
“At 910 PJ gross (2P plus 2C) Waitsia is clearly a Tier 1 asset with relatively low development costs and excellent proximity to infrastructure and markets. Add to this more than 300 PJ gross in 2C Contingent Resources from AWE’s other Perth Basin assets, including Senecio, Synaphea and Irwin, and you have over 1 TCF of gas located only 367 kms north of Perth and 80 kms from Geraldton.
“Further exploration and appraisal work is ongoing in L1/L2 and nearby permits to mature significant Waitsia-style prospects in the Kingia and High Cliff Sandstones, close to existing facilities,” Biggs said.
Waitsia Expansion Opportunities and Exploration Potential
AWE holds one of the largest acreage positions in the onshore northern Perth Basin and is well positioned to capitalise on its competitive advantage to discover new gas resources.
The Waitsia Field 2C Contingent Resource relates only to the tight gas currently discovered in the High Cliff Sandstone. During the drilling of all Waitsia appraisal wells, elevated gas shows were observed in a number of other formations including the Irwin River Coal Measures and the company is assessing whether these potentially significant resources have development potential.
Outside of the Waitsia Field, AWE has identified a number of future exploration targets that if successful could be tied into existing infrastructure or the upcoming Waitsia Gas Plant through expansion phases. Contingent resources are currently carried for the Dongara/Wagina Formations and sandstones within the Irwin River Coal Measures in the Perth Basin.
The new information acquired from the Waitsia campaign indicates these intervals offer prospective resource potential both around the Waitsia field area and more regionally across the AWE Perth Basin acreage. In particular, it has been observed that good reservoir quality extends east offering prospective reservoir opportunities beyond the Waitsia Field.