AWE Completes Core Analysis for Arrowsmith Well
AWE advised that the core analysis for the recently drilled Arrowsmith-2 well in EP413 (AWE 44.252%) has been completed. Two conventional cores (101 meters recovered) and 30 rotary side wall cores were cut as part of the drilling program undertaken in June 2011.
The analysis of the shale intervals (Carynginia, Irwin River Coal Measures and Kockatea Formations) and the tight sand target in the High Cliff Sandstone indicates that all four units are suitable for hydraulic fracture stimulation.
AWE also advised that the planned hydraulic fracture stimulations of the Woodada Deep 1 well in L4/L5 (AWE 100%) and the Arrowsmith-2 well have been endorsed by the Western Australian Environmental Protection Agency (EPA), which has decided to not assess the projects. However, a third party appeal of the EPA decision has been received and a determination from the WA Minister for Environment is now anticipated in approximately two months.
Subject to a positive determination from the Minister for Environment and the availability of equipment, the earliest timing for commencement of work is now late 2011. AWE's operational plans may be further amended to accommodate summer season constraints for field activities.
For the Senecio tight gas project, the workover program at the Senecio-2 well in L1/L2 (AWE 50%) has been completed and the well is fully prepared for the hydraulic fracture stimulation program. An environmental management plan for the proposed hydraulic fracture stimulation project has been submitted to the regulator for approval. However, a third party referral to the EPA has been made subsequent to this AWE submission. As a result, the earliest anticipated commencement of the hydraulic fracture stimulation program is now also estimated to be late 2011, subject to regulatory approvals.
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