Sydney-based AWE Ltd. has reported that preliminary results from the two wells under extended production test at Waitsia gas-condensate field in licenses L1/L2 in the onshore north Perth basin of Western Australia have exceeded pre-production expectations.
AWE said the production performance during the first three months of operation confirms a high-quality reservoir system with excellent connectivity for the Kingia Sandstone reservoir produced from Senecio-3 and the High Cliff Sandstone reservoir produced from Waitsia-1.
Overall production from the field for the December 2016 quarter increased by 149% over the previous quarter. This comprised 770 terajoules of gas, or 8.4 terajoules/day. Total condensate production for the quarter was 172 bbl.
AWE said the Waitsia Stage 2 project began pre-front-end engineering design work during the December quarter and final preparations are now being made to drill two appraisal wells on the field during the first half of this year.
The wells will conclude the Stage-2 appraisal.
AWE said it is endeavouring to contract substantial gas volumes during this calendar year ahead of a final investment decision. The Stage 2 project is expected to supply about 100 terajoules/day of gas for 10 years.
Feedback from potential customers is that Waitsia gas supply will be a welcome addition to Western Australia’s domestic gas market. Bid volumes have so far totalled more than double the AWE-Origin Energy Ltd. JV’s 2P reserves at the field.
Negotiations for gas sales are well advanced with a selected short-list of buyers.
AWE and Origin Energy each have 50% of the project with AWE as operator.