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AWE in Waitsia-3 gas find

Written by  Monday, 03 July 2017 22:26
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Australian energy company AWE said it anticipates booking additional Waitsia reserves in the second half of 2017, following the successful appraisal of the Waitsia-3 well, the first of a two-well drilling program planned for the field in Western Australia’s onshore Perth basin.

Preliminary analysis of wireline log and pressure data from the well has confirmed the southern extension of the Waitsia gas field by encountering strong gas shows across a 150m gross interval including the Kingia and High Cliff Sandstone reservoir targets.

“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,” said CEO David Biggs.

“The observation of gas below the previously interpreted GWC may have positive implications for the rest of the field and provide new appraisal and exploration opportunities within the permit.

“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 2017,” he added.

Waitsia-3 was spudded on 19 May, ahead of schedule and under budget. It is the first of a two-well appraisal drilling program designed to appraise the gas potential in the southern extension of the Waitsia field. The Enerdrill Rig 3 is currently being redeployed to the location of the second well, Waitsia-4.

The Waitsia gas project is a 50:50 joint venture (JV) between operator AWE, and Origin Energy. Capable of supplying the domestic market with 100 TJ/d for 10 years from conventional reservoirs, the Waitsia field is regarded as the largest onshore conventional gas discovery in Australia.

In June, the JV agreed to commence the design competition phase of front-end engineering design (FEED) for Stage 2 of the project which includes a gas plant, CO2 extraction, collection hubs, and flow lines. The four contractors selected to proceed to the design competition are Quanta-Suez, ATCO Australia, SNC-Lavalin, and Clough. 

AWE is targeting completion of all phases of FEED by the end of 2017, prior to achieving a final investment decision. 

Image: AWE onshore Perth basin / AWE

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