AWE Energy has popped the bubbly, celebrating one of the highest onshore flow rates in the Australian oil and gas industry.
The Sydney independent oil and gas producer revealed that the Waitsia-4 well in the Perth Basin flowed gas at an instantaneous maximum rate of 90 million standard cubic feet per day from the Kingia Sandstone and an average of 89.6 MMscf/d on a 96/64 inch choke at ~2,395 psig flowing well head pressure over a 23-minute period.
AWE shares soared 7% to 58c on the Australian Securities Exchange (ASX) and were trading at 56c at the time of going to press following news that Waitsia-4 had produced the highest ever flow rate from the Waitsia gas field, confirming “excellent reservoir quality and well deliverability”.
AWE said no further testing would be required prior to a final investment decision for stage two development of Waitsia.
The Waitsia field – a conventional play in the Kingia and High Cliff Sandstone formations – is Australia’s largest conventional discovery for the past 40 years, with enough estimated gas to supply the domestic market with 100 terajoules a day for 10-years.
AWE said the testing program was designed to determine well deliverability from the southern extent of the Waitsia field and to collect gas samples for compositional analysis. The zone being flow tested is the Kingia Sandstone, where a 50-metre interval (3,370-metres to 3,420-metres Measured Depth Below Rotary Table) had been perforated.
AWE’s CEO and Managing Director, David Biggs, said: “The results from Waitsia-4 are exceptional and the 2017 Waitsia appraisal program overall has been outstanding. We have successfully confirmed a high quality, conventional reservoir system with excellent well deliverability.
“Overall, these results have exceeded our pre-test expectations and reinforce our plans for the Stage 2 development, particularly the low number of wells initially required and the straightforward facilities design.
“Waitsia-4 completes the sub-surface works program. Results from Waitsia-4 will be incorporated into AWE’s ongoing evaluation of Waitsia reserves and we expect to release a reserves update before the end of 2017.”
Biggs said success at Waitsia meant AWE was now considering fewer wells for the project, which is expected to be given FID approval by the end of this year.