AWE Reports Significant Gas Discovery at Perth Basin Well

Australia listed AWE on Tuesday announced significant gas discovery at Senecio-3 appraisal well at its operated permits L1/2 in Western Australia's Perth Basin.

The company previously reported that the primary target Dongara/Wagina formation was intersected from 2,635m to 2,759m on prognosis. Elevated gas shows were observed and the Senecio-3 well was deepened to 3,370m to appraise secondary targets.

AWE said wireline logs and pressure tests have identified a significant gas discovery in the deeper sands below the primary target, which has the potential to contain a substantially larger volume than the gas accumulation in the Dongara/Wagina formation.

“This is a very exciting discovery that adds considerable momentum to the near-term development potential of the Senecio gas field and other nearby prospects in the north Perth Basin. The positive appraisal of the Dongara/Wagina reservoir and the discovery of a potentially larger new gas play in the deeper sands have increased the likelihood of commercial development of the Senecio gas field, particularly given the proximity to existing infrastructure,” Bruce Clement, AWE’s Managing Director, said.

Clement added that gas production from the Senecio field with a low cost tie in to the AWE-operated Dongara Gas Plant, 7km to the west, would be a logical first step in commercialising unconventional gas in the onshore Perth Basin would reinvigorate the gas industry in the Mid West of Western Australia.

“This discovery has materially upgraded the potential of other prospects in the area and the joint venture plans to drill the Irwin-1 exploration well to the east of Senecio later this year, targeting the same plays. We are prioritising the evaluation of the new gas discovery at Senecio and AWE is also evaluating the potential for a conventional flow test of Senecio-3 later in 2014,” Clement said. 

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