The independent review and evaluation, undertaken by RISC, highlights the significantly better than expected reservoir quality, thickness and well deliverability outcomes from the recent drilling and testing program.
“The Waitsia Stage 2 development project is planned to deliver 100 TJ/d for at least ten years,” said AWE CEO and Managing Director David Biggs.
“The additional reserves identified by this review are more than double the reserves required for this project, and provide opportunities for significantly increased near-term field production and longer field life.
“The recent flow tests at Waitsia-2 (39 MMcf/d) and Waitsia-3 (50 MMcf/d) were expectional and we are aiming to flow test Waitsia-4 before the end of November.”
Sub-surface appraisal at Waitsia in almost complete, and the front-end engineering and design (FEED) process is targeting final tender submissions by the end of November.
AWE is working towards being in a position to consider a final investment decision (FID) by the end of 2017, subject to securing sufficient gas sales agreements.
The Waitsia field is located in L1/L2 in the onshore Perth Basin, Western Australia.
Joint Venture partners in L1/L2 are AWE Limited (50 per cent and operator) and Origin Energy (50 per cent).
AWE moves to raise funds
Furthermore, AWE is looking to strengthen its books with a fully underwritten institutional share placement to raise approximately $38 million.
The institutional placement will be followed by an offer to all eligible shareholders to participate in a Share Purchase Plan (SPP) to raise a further $10 million.
The proceeds from the placement and SPP will be used to:
- Strengthen AWE’s balance sheet
- Support Waitsia Stage 2 funding
- Other existing portfolio development and growth opportunities.
“This equity raising will provide partial funding for Stage 2 of the Waitsia Gas Project while providing AWE with the flexibility to achieve the best possible outcomes in terms of east and west coast gas sales and construction options for the Waitsia Stage 2 facilities,” said Mr Biggs.
“It will also strengthen our balance sheet ahead of refinancing our existing debt facility.”