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WAITSIA gas field is Australia's biggest conventional gas find in 30 years, and today its owners AWE Limited and Origin Energy announced it could have 34% more gas than previously thought.
Located around 367 km north of Perth, the field was discovered in September 2014 and is a joint venture between the two listed Sydney companies, with each owning 50 per cent.
Perth-based RISC Operations provided the independent review and certification of the reserves and contingent resources of the field just three months after AWE provided the previous reserves estmiate.
In June this year, AWE booked an estimated 172 Bcf of gas for the project, but the RISC certification has reported net 230 Bcf of gas a 34 per cent increase.
AWE managing director and CEO, David Briggs, says the RISC report confirms that the Waitsia gas field has reserves to market at least 100 TJ per day for up to 10 years.
"The independent work done by RISC not only certifies our current 2P Reserves, it highlights the substantial upside potential of the Waitsia field," says Briggs.
Despite the improved estimation, AWE will retain its previous estimate until ongoing seismic studies, further drilling, flow testing and analysis are completed.
"We are planning to drill two new appraisal wells on the Waitsia field in 2017 and the data from these wells will help us to further assess our booked reserves and contingent resources," says Briggs.
"Production from Waitsia Stage 1A (10 TJ/day) commenced in August 2016, on time and under budget.
"Real production data and certified reserves will add considerable impetus to our gas marketing efforts and we are currently looking to contract significant volumes ahead of the final investment decision for Stage 2 (100 TJ/day) of the Waitsia development."
When fully developed, AWE says the onshore Perth Basin could meet around 10 per cent of Western Australia's domestic gas demand. The Waitsia field could have as many as 20 wells spread over 50 square kilometres, delivering 100 TJ/day and producing gas for more than 20 years.
AWE is trading up 2.21 per cent this morning at $0.60 per share, while Origin Energy is trading down 2.14 per cent at $4.80 per share.
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