See the AWE Origin Anns todayOrigins recent discoveries underpin...

See the AWE Origin Anns today

Origins recent discoveries underpin new gas sales
agreement in Western Australia
Origin Energy Limited (Origin), Australias leading integrated energy company,
today announced that its subsidiary Origin Energy Developments Pty Ltd has signed a
new contract for the sale of gas in the Perth Basin to a subsidiary of AWE Limited.
The gas will be onsold to the Western Australian energy retailer Synergy.
The contract has been made possible by recent gas discoveries in the Redback area
of the Perth Basin, together with existing gas reserves in local fields.
The gas sales will commence during August and will be for a period in excess of five
years. Under the agreement Origin will sell up to 25 petajoules of gas subject to the
confirmation of gas reserves by November 2010.
In commenting on the gas sales agreement, Origins Executive General Manager
Upstream Oil and Gas, Mr Paul Zealand said, It is particularly pleasing to be able to
commercialise this gas so soon after its discovery.
The Redback South 1 and Redback 2 wells were drilled during the course of the
2010 financial year and both resulted in the discovery of gas, with tests on Redback
South recording one of the highest gas flow rates ever recorded for an onshore well
in Australia. Furthermore we are able to take advantage of spare gas processing
capacity at our nearby Beharra Springs gas plant, so development costs are low and
gas supplies can commence immediately.
We are continuing with further technical evaluation and appraisal drilling aimed at
increasing reserves in the Perth Basin, including the Wolf-1 appraisal well currently
being drilled in the L11 license area, he said.