Oz EWC to Recommission Two Queensland Fields
Australia-listed Energy World Corporation (EWC) has been granted funds by the Australian government to accelerate the recommissioning of two gas fields in Queensland, EWC said August 24.
EWC’s 100% subsidiary, Australian Gasfields, has finalised an agreement with the Australian government, whereby the government will provide up to A$2mn ($1.46mn) in funding under Gas Acceleration Program. The funds will be used to accelerate the recommissioning of EWC’s Eromanga and Gilmore gas fields in Queensland. The fields, which are located in southwest Queensland, are 100% owned by EWC and were put into care and maintenance in 2001.
The terms of funding provide for an upfront payment of A$500,000 followed by reimbursement of 50% of the amount the company spends (after the first $1m of expenditure), subject to meeting certain milestones, the company said.
The fields have a total of 31bn ft3 of resource and substantial upside potential, according to EWC. In addition, the company gas recently acquired the remaining 80.4% share of the Thylungra field (PL 184) which can be tied in to its Eromanga processing plant and has potential additional reserves from its two previously drilled discovery wells.
Each of the company's processing facilities has a through put capacity of 12 TJ/d of gas, allowing EWC to produce up to 24 TJ/d of gas when fully utilised. Both facilities are connected to existing gas production wells and the broader Queensland gas pipeline infrastructure, EWC said.
"The East Coast gas supply shortfall issues and the resultant significant increase in gas prices has created and excellent opportunity for recommissioning of our gas fields. We are grateful for the funding provided by the Australian government which will cover a part of our expected costs, and are now moving forward to re-establish vehicle access to the wells, pipelines and processing plant at Eromanga," Brian Allen, executive director of EWC said.