Oil and Gas News

Warrego makes progress at West Erregulla, Northern Perth Basin

west erregulla gas field

This quarter, petroleum explorer Warrego Energy has made progress across a number of its projects. Most notably, the company has provided updates on its activities in the West Erregulla gas fields and Northern Perth Basin, as well as some of the preliminary results from its blue hydrogen and Carbon Capture and Storage (CCS) project.

West Erregulla gas fields

To confirm the northern extent of the West Erregulla field, the West Erregulla-3 well will be re-entered. Drilling is expected to commence in June or July 2022, for approximately 50 days, in the hope that this will increase reserves.

Technical options for re-completion and retesting for WE-5 are currently being evaluated, and these activities likely occur in 2023 alongside WE-2 and WE-4. Commencement of the drilling of WE-6 is anticipated in 2023.

The West Eregulla Gas Project is also currently progressing through various environmental permitting processes in line with the requirements of the Environmental Protection Authority of Western Australia (EPA). EPA approval is critical for the project’s continuance, and is needed before financing and construction agreements can be finalised.

It is anticipated that approvals will be delivered later than expected, and first gas will likely be achieved in late 2024.

Northern Perth Basin

Warrego has applied for a 2.2 million acre permit located in the Coolcalalaya Perth Basin, targeting conventional gas reservoirs. Surface geology and potential field modelling have indicated that the permit area has excellent exploration potential, with the possibility of conventional extraction of gas and liquid hydrocarbons.

If granted, the EPA-0127 permit will also be the largest onshore exploration permit in WA. However, negotiations with Native Title groups are ongoing, and the program is still being assessed by the Department of Mines, Industry Regulation and Safety (DMIRS).

Blue hydrogen and CCS project

In order to achieve net-zero carbon emissions by 2050, Warrego is making decarbonisation a high priority. The company is conducting a jointly funded feasibility study for the Mid West Blue Hydrogen and carbon capture and storage (CCS) project in a consortium with APA and Pilot Energy.

The study, which is centred on the Cliff Head oil field and is near completion, will assess the project’s potential to deliver clean energy. So far it has confirmed that the WA 31L area has CCS potential of 6.4 million tones of CO2 at a CO2 injection rate of 500,000 tonnes of CO2 per year; the license area has an upside CO2 storage capacity of approximately 15.9 million tonnes; and the existing Cliff Head oil field offshore facilities are suitable for implementing the CCS operation.

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