AWE Says Recoverable Reserves at Waitsia Field in Perth Basin Up 93%
Sydney based AWE on Friday announced recoverable gas estimate for Waitsia field in Perth Basin, Western Australia has almost doubled.
The upgrade follows the extensive evaluation of new core data acquired in 2015 from the Waitsia-1 and Waitsia-2 wells and further analysis of well test data from the Senecio-3 and Waitsia-1 wells. AWE said in a statement that recoverable reserves are estimated at 344 billion cubic feet, up 93 percent from an earlier estimate of 178 billion cubic feet.
Earlier this month the company rejected a proposal from Lone Star Japan Acquisitions, Ltd on behalf of Lone Star Fund, to acquire all of the company’s shares. The upgrade would be a vindication of AWE's decision as it had called the offer opportunistic and said it does not reflect the fair underlying asset value of the company.
“This significant reserves upgrade is another very successful step in the ongoing appraisal of the Waitsia gas field and underlines the strategic importance of this exciting onshore gas project,” AWE Managing Director David Biggs said. “Modelling indicates that in a full field development an initial plateau rate of approximately 100 TJ/day can potentially be achieved from six wells, including the three wells already drilled. Excellent well productivity and easy access to infrastructure will see AWE positioned as a low cost gas producer in Western Australia.”
AWE holds 50 percent stake in the Waitsia field while Origin Energy owns the remaining stake. The upward revision in recoverable reserves estimate comes as a booster for Origin which has put its Perth Basin assets up for sale. According to Origin’s website, the Perth Basin assets include a stake in the producing Beharra Springs gas field as well as an interest in the Waitsia project.