AWE, Origin Confirm Huge Gas Find in Western Australia

Australia’s AWE Limited on Thursday announced it may have discovered one of the largest gas deposits in Western Australia in almost 50 years.

The Waitsia gas field could hold as much as a trillion cubic feet of gas, according to AWE.

“After initial analysis of data from the Senecio-3 well, and the existing 3D seismic, AWE estimates that the Kingia/High Cliff Sandstone intervals in the Waitsia Field have gross Contingent Resources in the range from 65 billion cubic feet (Bcf) to 1170 Bcf, with a best estimate (2C) of 290 Bcf,” the company said in a statement.

AWE plans further evaluation and appraisal will be required to more accurately define the size of the accumulation.

“AWE believes the Senecio/Waitsia discovery could represent the largest onshore conventional gas discovery in Western Australia since the Dongara gas field was discovered in the 1960s,” Bruce Clement, AWE’s Managing Director, said.

Earlier this month, AWE reported significant gas discovery at Senecio-3 appraisal well at its operated permits L1/2 in Western Australia's Perth Basin.

The company has cased and suspended the Senecio-3 well in preparation for conventional flow testing of multiple reservoir intervals in the Senecio and Waitsia fields later in 2014. A Waitsia appraisal well is also under consideration for drilling in early 2015.

AWE is the operator and owns a 50% stake, with Origin Energy Resources holding the remaining 50%.