Australia's AWE eyes commercial development of Western Australian tight gas find
Sydney (Platts)--6Feb2013/610 am EST/1110 GMT
Australian exploration and production company AWE has begun studying the
feasibility of a commercial development at its 50%-held Senecio tight gas
discovery in the north Perth Basin in Western Australia.
"The joint venture's decision to proceed with the feasibility study is
another positive step towards the development of unconventional gas in
Western Australia," AWE managing director Bruce Clement said in a statement
Wednesday. AWE's partner in the project is Australia's Origin Energy.
The Senecio discovery produced gas at a stabilized rate of 1,350 Mcf/day
from a 5 meter interval during a flow test in September last year, AWE said.
Pressure test and other data gathered since then "demonstrates potentially
commercial reservoir flow capacity," the company added.
AWE has previously booked a contingent resource volume of 4.4 million
barrels of oil equivalent for its half share of Senecio, which is equivalent
to a gross resource of 50 Bcf of wet gas, according to the company. But 2D
seismic data has indicated a potential estimated recoverable volume of at
least double the quantity currently booked, and the feasibility studies will
include an updated definitive resource estimate, AWE said.
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"The results of the pressure test, the flow test, and the Irwin 3D
seismic program indicate that a horizontal, multi-stage, hydraulically
fracture stimulated well at Senecio could be economically viable," Clement
said. "The Perth Basin is potentially a very important source of energy for
the Western Australian market and we believe that the timely completion of a
development feasibility study will help define a valuable gas resource."
AWE plans to consider using nearby existing plant processing
infrastructure where possible, to minimize the project's environmental
footprint and development costs. Evaluation of the Dongara and Xyris gas
plants and associated infrastructure will form part of the study, the company
Detailed work on project planning, budget and product marketing could
start as soon as the second quarter of 2013, AWE said.
"The prospect of commercializing Senecio provides strong encouragement
for the development of other tight gas opportunities in the Perth Basin,
including the Corybas discovery and the High Cliff discovery (the latter in
the Arrowsmith-2 well)," Clement said. "Our exploration team is looking at 30
years of accumulated data for the Perth Basin, compiled through conventional
oil and gas exploration activities, to identify additional tight gas
intersections with development potential."
--Christine Forster, firstname.lastname@example.org
--Edited by Irene Tang, email@example.com