Waitsia well exceeded expectations: AWE

Sydney-based gas producer AWE plans to upgrade its resource estimate for the Waitsia gas field in the Perth Basin in coming months after a recent drilling campaign showed the field extends further eastward than initially thought.

AWE is a 50 per cent owner of the project, which has been touted as the largest onshore conventional gas discovery in Western Australia for decades, while Sydney-based Origin Energy holds the remaining share.

Previous estimates suggested Waitisa, which was discovered in September 2014, could supply up to 100 terajoules per day of gas into the domestic market.

Enerdrill rig three completed the latest well, Waitisia 4, after a five-week program that found gas in the Kingia and High Cliff reservoirs.

AWE now plans to conduct flow testing on that well and two other wells in the December quarter.

Chief executive David Biggs said the appraisal well had exceeded expectations.

“The substantial thickness of the Kingia reservoir, combined with exceptional porosity, net pay and low levels of total inerts, continues to position the Waitsia Field as the largest onshore conventional gas discovery in 40+ years,” he said.

“The combined data from Waitsia-3 and Waitsia-4 will allow a complete re-evaluation of the extended Waitsia Field and we anticipate a further upgrade to reserves and contingent resources in the first half of financial year 2018.

“The well was drilled on schedule and on budget and all primary and secondary objectives were met… the Enerdrill Rig 3 has been released and this concludes the current drilling evaluation program.”

Shares in AWE closed 2.7 per cent higher at 45.7 cents each, while shares in Origin fell 0.1 per cent to $7.33 each.