04/07/2017 - 14:53

Drilling success for AWE

04/07/2017 - 14:53

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AWE has reported more positive drilling results at its half-owned Waitsia gas field near Dongara, which it has previously said could be the biggest onshore gas discovery in WA for 50 years.

Drilling success for AWE
Waitsia is an onshore field in the Perth Basin.

AWE has reported more positive drilling results at its half-owned Waitsia gas field near Dongara, which it has previously said could be the biggest onshore gas discovery in WA for 50 years.

The Sydney-based company will be aiming to increase its reserve numbers in coming months after today confirming an extension of the Waitsia field in the Perth Basin.

Enerdrill Rig 3 drilled the High Cliff Sandstone and Kingia reservoirs, about 20 kilometres from Dongarra, for AWE beginning in May.

Waitsia is 50 per cent owned by Origin Energy.

AWE managing director David Biggs said the appraisal exceeded expectations.

“The substantial thickness of the Kingia reservoir, combined with exceptional porosity, net pay and low levels of total inerts, confirms excellent reservoir quality in the southern extent of the Waitsia Field,” he said.

“The observation of gas below the previously interpreted gas-water contact may also have positive implications for the rest of the field and provide new appraisal and exploration opportunities within the permits.

“We will continue our analysis and evaluation of the Waitsia-3 data, but we are already looking ahead to the Waitsia-4 appraisal well, which is expected to spud in the first half of July.

“The combined data from Waitsia-3 and Waitsia-4 will allow us to review our estimated reserves and resources for the entire Waitsia Field and, subject to Waitsia-4 results, we anticipate a further upgrade to reserves within the second half of calendar year 2017.”

In an additional move today, the AWE board advised shareholders to ignore an updated merger offer from Queensland investment vehicle Dawney & Co, the second such offer.

Shares in AWE were 1.5 per cent higher at 47.1 cents each at the close of trading.

It comes a day after shareholders in Transerv Energy approved a name change for the company to White Bark Energy.

The company will focus on a joint venture with Point Loma Resources in Alberta, Canada, and the Xanadu- 1 well with Norwest Energy in the Perth Basin.

White Bark will retain exposure to the Warro project, also in the Perth Basin.

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