Unconventional Gas explorer Westralian Gas and Power Ltd (ASX:WGP) is encouraged by the finds of its joint venture partner AWE Limited (ASX:AWE) in its AWE`s Perth Basin Shale Gas Update announced on 9 November, 2010. AWEs Woodada Deep - 1 is located adjacent to WGPs EP455. EP455 is also adjacent to AWEs EP413. AWE Limited farmed-in for a 90 per cent equity share in WGPs Exploration Permit EP 455 in the North Perth Basin earlier this year. AWE paid $200,00 to WGP for the equity share and carry of EP455 through a gross permit expenditure of up to $7,500,000 after which AWE will pay 90 per cent and WGP 10 per cent of approved work programs and budget expenditure. AWE plans to secure a suitable drilling rig to begin drilling at EP455 early in 2011. WGP Executive Chairman Peter Briggs said that AWEs estimates of 13 to 20 trillion cubic feet (Tcf) of Gas in Place in the middle interval of one of the shale intervals (the Carynginia Shales) confirmed the prospectivity of both EP455 and WGPs wholly owned DR11 acreage south east of the AWE target areas. This is exciting news for everyone involved in unconventional gas exploration in Western Australia, he said. The exploration for shale gas in Australia is in its early stages but the technology could enable our State to be a major shale gas producer in the years ahead. Our Board decided earlier this year that a strategic partnership with AWE was the best way to explore for shale gas in the Perth Basin WGP is very well placed with its joint venture arrangements with AWE and with its own ground to be at the forefront of this exciting new resource industry. Mr Briggs said that while shale gas had traditionally been difficult to extract, modern hydraulic fracturing techniques developed in the United States have enabled new sources of natural gas to be exploited. Peter Briggs Executive Chairman
NWE Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
