Ann: AWE upgrades Waitsia 2P Reserves by 93%-AWE.AX, page-12

Org underestimated waitsia because it's not an operator.
Org thought Cooper Basins are better suited for its delivery chains.
Org balance sheet is not too bad as it has been put a couple of core assets for sale.
Org wants to concentrate on renewable energy.

The reserve upgrade could potentially push the 50% stakes up to 300 millions.

If Woodside wants to leverage its gas sales to local market then it's time.

Awe/ Mitsui won't win this auction and I don't know why it takes too long to announce the result. The auction started last week. The longer negotiation the worser outcome if Org is too greedy.

Org has plenty of cash so why shouldn't it keep this core asset. I know they're brainless. Whom on earth should pull a hedge of $10 poo costed 1 billion to keep its business running.


Massive boost for WaitsiaFriday, 3 June 2016


Haydn Black


TAKEOVER target AWE has upgraded 2P reserves in the Waitsia field by 93% to 344 billion cubic feet of gas, a single stroke that not only helps support its decision to rebuff the unwanted amorous advances of US-based Lone Star Fund, but which could push up the price for Origin Energy’s share of the asset.





AWE this morning said its 2P share of Waitsia had been boosted to 172Bcf, while gross 2P reserves plus 2C contingent resources increased by 30% to 630Bcf, up from 484Bcf.




Once the previously announced Senecio, Irwin and Synaphea 2P and 2C reserves are included the field tips in at 867Bcf.




AWE has announced that it is shooting for the moon, and will seek significant reserves and resources upside with appraisal drilling next year that, with even a fraction of the success will see Dongara, the Perth Basin’s hitherto largest discovery left in the shade.




Indeed, with a modicum of success, AWE could be sitting on more than one trillion cubic feet of mostly conventional gas.




AWE’s upgrade follows the extensive evaluation of new core data acquired in 2015 from the Waitsia-1 and Waitsia-2 wells and further analysis of well test data from the Senecio-3 and Waitsia-1 wells.




The core from the wells was found to have significantly better reservoir quality than initially predicted from wireline logs, leading to a reclassification of previously reported Kingia Sandstone 2C resources to 2P reserves.




The data, integrated with dynamic reservoir modelling, over the entire Waitsia field, shows that gas present in sandstones with a 5-11% porosity range can be produced when in connection with high quality reservoir with porosity greater than 11%.




The 5% cut-off is based on the current understanding, and further work could see that lowered further to bring tighter sandstones into the fold.




Managing director David Biggs said that analysis and evaluation of the full well dataset, including the excellent flow test results from Waitsia-1, allowed AWE to significantly increase the company’s previous estimate of gross recoverable gas and increase the 2P reserves.




“This significant reserves upgrade is another very successful step in the ongoing appraisal of the Waitsia gas field and underlines the strategic importance of this exciting onshore gas project,” Biggs said.




“Using the data gathered from the three appraisal wells drilled to date, we have made substantial progress on field modelling and we are currently finalising concept selection options for the full field development of Waitsia and surrounding fields.”




The company is sure full field development can deliver 100 terajoules per day into the local market from a mere six wells, including the three wells drilled to date.




“Excellent well productivity and easy access to infrastructure will see AWE positioned as a low cost gas producer in Western Australia,” Biggs said.




Construction of the first stage of the development, which will see 10TJpd delivered on a take-or-pay basis to Alinta Energy is proceeding on schedule for a start-up in the third quarter.




The two appraisal wells that have been announced for 2017 will focus on the south-eastern extent of the field, and will be designed to allow completion as future production wells.




AWE expects the field will need up to 20 wells over its life, connected into a new or expanded centralised gas processing facility.




AWE owns 50% of the operated L1/L2 and 33% of the non-operated EP 320, with Origin owning the balance.




The Sydney-based oiler is believed to be in the bidding for Origin’s share with Japan’s Mitsui.



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