Transerv Energy Spuds Warro-5 Well in WA's Warro Gas Field

Warro-5 and 6 are the first wells to be located with the benefit of the Warro 3D seismic, which has provided a clear picture of the gas zones, deep-seated faulting and the field outline.

The drilling of Warro-5 and 6 is of no cost to Transerv because the wells will be funded through the existing farm-out arrangement with Alcoa of Australia. Under this agreement, Alcoa can earn up to a 65 percent interest in the field by spending $73.77 million (AUD 100 million).

Alcoa has invested approximately $36.89 million (AUD 50 million) to date (resulting in a 43 percent interest) and these wells are expected to cost a further $22.13-$29.50 million (AUD 30-40 million), depending on results.

The Warro Field is located 124 miles (200 kilometers) north of Perth and 18.6 miles (30 kilometers) from the Dampier-to-Bunbury (DBNG) and Parmelia pipelines, meaning the field is ideally located to provide gas to markets along both pipelines.