AWE to Determine Forward Work Plans After Drilling Senecio-3 Well in WA

AWE Limited, as Operator of Permits L1/L2 in the Perth Basin, Western Australia, reported Tuesday that as at 06:00 hours (6.00am) AWST today, the Senecio-3 appraisal well has been cased and suspended and that the drilling rig is being demobilized.

As previously reported, the primary target Dongara/Wagina formation was intersected on prognosis. Contingent Resources for the Dongara/Wagina formation are estimated to be from 40 to 130 billion cubic feet (Bcf) of gas gross, based on the well data and existing 3D seismic. The best estimate 2C Contingent Resource was revised upwards to 70 Bcf gross.

Elevated gas shows were observed and the Senecio-3 well was deepened to a total depth of 11,056 feet (3,370 meters) to appraise underlying secondary targets. A significant gas discovery was identified 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.

The joint venture plans to appraise the new discovery on a high priority basis and AWE is currently evaluating wireline logs and other data from the deeper discovery to assess potential volumes and to determine forward work plans.

Core samples and log data from the Dongara/Wagina reservoir will be fully analysed and evaluated prior to making a decision on field development. AWE will not conduct hydraulic fracture stimulation on Senecio-3 at this stage. The Senecio-3 well could be completed as a production well in a future field development.

The Senecio-3 appraisal well is located on agricultural land approximately 9 miles (14.5 kilometers) east of Dongara, Western Australia, and 4.3 miles (7 kilometers) from the AWE-operated Dongara gas plant.

The Joint Venture partners in L1/L2 are:

  • AWE Limited (via subsidiaries) (Operator) - 50.0 percent
  • Origin Energy Resources Limited - 50.0 percent


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