SHARE

AWE Limited said Tuesday it has confirmed the upside potential at its Waitsia-1 appraisal well at permits L1/L2 in the Perth Basin, Western Australia.

The company said that wireline log and pressure data from the Waitsia-1 appraisal well confirmed a 311 foot gross gas column across three conventional reservoir intervals in the Waitsia field.

The data confirms initial results from the Senecio-3 discovery well and identifies “substantial” upside potential, Australia-based AWE Limited said.

The well was drilled to a revised total depth of 11,505 feet, having drilled successfully through the full prospective section and into the Holmwood Shale.

The primary and secondary targets were penetrated at depths close to prognosis with “good gas shows being encountered in the Kingia, High Cliff and Dongara Sandstones.”

Gas shows were also observed in the Irwin River Coal Measures and the Carynginia Shale.

A gas-water contact  for the Waitsia field was established at 10,990 feet total vertical depth subsea, about 1,148 feet below the top of the mapped structure.

AWE said wireline pressure data indicates that the three good quality reservoir intervals in the Kingia and High Cliff Sandstones are “likely to be continuous with equivalent zones in the Senecio-3 well.”

The company said overall reservoir quality appears to be better than Senecio-3, with considerable thickening of the High Cliff Sandstone pay interval.

Conventional net gas pay for the well is interpreted to be 59 feet with average porosity of 18 percent.

A tight gas reservoir, equivalent in quality to Senecio-3, was also encountered in the shallower Dongara Sandstone and further confirms the extent of the Senecio field.

“The data acquired so far support the previously announced gross 2C Contingent Resource estimate of 290 Bcf of gas for the Waitsia field, and the thickening of the net conventional gas pay in Waitsia-1 indicates considerable potential upside,” AWE Limited said.

The company added that the gas bearing intervals appear to be in pressure communication across the northern culmination from Senecio-3, indicating that region of the field has sufficient resources for commercial development.

Planning for early production from Waitsia-1 and Senecio-3 is underway.

“The further success in Waitsia-1, following discoveries in the Senecio-3 and Irwin-1 wells, has reconfirmed the potential of the North Perth Basin to deliver substantial volumes of commercial gas into the Western Australian domestic gas market,” AWE Limited managing director Bruce Clement said.

AWE Limited, through subsidiaries, holds a 50 percent operating stake in permits L1/L2.

Australia-based Origin Energy Resources Limited holds the remaining 50 percent.