Australian AWE Says Waitsia is 'Top-Tier' Asset
Australian takeover target AWE has upgraded the Waitsia project’s reserves and resources which now ranks in the top five largest gas fields ever discovered onshore Australia, the company said December 19.
“Recent appraisal drilling and outstanding flow test results from Waitsia-2 (39mn ft3/d), Waitsia-3 (50mn ft3/d) and Waitsia-4 (90mn ft3/d) have confirmed that Waitsia is a world class onshore gas field,” AWE’s CEO and managing director David Biggs said, putting its reserves/resources at 910 petajoules (24.3bn m3).
“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 trillion ft3 of gas located only 367 km north of Perth and 80 km from Geraldton,” he said.
The 2P Reserves were increased by 80% to 820 PJ gross, with 410 PJ net to AWE. Origin Energy and AWE hold 50% interests in the project.
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, AWE said.
Takeover bids have been made for AWE in recent weeks by Australian Mineral Resources and China Energy Reserve and Chemical Group.
The Waitsia field was discovered in September 2014 and has the capability to supply the domestic market with 100 TJ (2.67mn m3)/d of gas for at least 20 years from conventional reservoirs, AWE says.