24/07/2015 - 13:45

AWE won't frack Drover well

24/07/2015 - 13:45

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Sydney-based Perth Basin player AWE has announced it won't need to further use hydraulic fracturing at its Drover-1 well, after existing drilling results gave it a clear assessment of shale gas potential in the field.

AWE operations in the Perth Basin.

Sydney-based Perth Basin player AWE has announced it won't need to further use hydraulic fracturing at its Drover-1 well, after existing drilling results gave it a clear assessment of shale gas potential in the field.

The company said analysis from a diagnostic fracture injection test, core sampling and wireline data have given it a sufficient understanding of the field's size.

The well is located 220 kilometres north of Perth in the EP455 permit and is 81.5 per cent owned by AWE.

Titan Energy owns the remaining portion of the permit.

AWE has a number of potential unconventional plays in the Basin, including the Senecio field.

It is unclear whether it will undertake further fracturing to produce at the well in future, but the company did say it had applied for a renewal of its permit.

AWE was down 1.3 per cent to $1.18 per share at the time of writing.

Business News will give in depth analysis of the state's onshore oil and gas industry, particularly hydraulic fracturing, in next week's issue.

 

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