Warrego Energy Ltd., Perth, has signed a $40 million (Aus.) farmout agreement with Dutch exploration and production specialists Dyas BV and Mazarine Energy BV to bring technical expertise to development of the West Erregulla tight gas field in the onshore North Perth basin in Western Australia.
Warrego, a private company formed in Scotland, was awarded 100% of permit EP469, which contains the West Erregulla discovery in late 2007.
The field has been assessed to contain an estimated 185 bcf of gas in place plus a potential for 3 tcf of unconventional gas.
On completion of the farm-out Warrego will retain 20% interest in the permit with Dyas taking 30% and Mazarine 50%. Mazarine also will take over the operatorship.
The two-stage appraisal program will begin with a 3D seismic survey of the field this year. If results are promising, this will be followed by an appraisal well on West Erregulla in 2015 with a view to bringing the field on stream the following year.
Warrego has spent the last 3 years in a painstaking environmental survey along with the obtaining of traditional owner permissions for the appraisal program.
The field was originally discovered in 1990 by Barrack Energy about 230 km northeast of Perth. It’s potential is enhanced by the fact that it lies about 50 km south of the region’s prominent Dongara oil and gas field and 20 km from the major Dampier to Bunbury gas trunk line feeding North West Shelf gas to southern Western Australia.