Oil and Gas News

Warrego progresses AGIG procurement

West Erregulla

 Warrego Energy has commenced payments to Australian Gas Infrastructure Group (AGIG) to facilitate the procurement of long lead items (LLIs) required for construction of the 87 TJ/d gas processing facility, consistent with the project’s timeline for first gas in the second half of 2023. 

Independent certification of West Erregulla Reserves by Nertherland, Sewell & Associates, Inc. (NSAI), completed in October 2021 for the EP469 JV, was in line with independent certification of West Erregulla Resources by RISC Advisory, completed in May 2020 for Warrego. 

It supports the ability to meet the contracted volumes of 2P Reserves of 300 PJ of gas (gross) with 3P upside of 372 PJ (gross), 2C contingent resources of 128 PJ of gas (gross) and a further 198 PJ (gross) of 2U Prospective Resources.   

Following finalisation of the independent West Erregulla Reserves certification, Warrego expects to shortly mandate selected banks to engage in formal due diligence to arrange a proposed project finance facility for its 50 per cent share of the West Erregulla Gas Project.  

The WE-4 well, a step out appraisal well drilled down-dip on the south-eastern flank of the Central Area of the West Erregulla gas field, was flow tested in July and achieved a sustained rate of 35 MMscf/d through a 76/64-inch choke at 1,770 psig FTHP after a 46-hour flow period, an excellent result for a flank well. 

The WE-5 well, located to the north of the central area between WE-2 and the fault that divides the Central from the Northern Area of the field, commenced flow testing operations in July 2021.  

After a prolonged flow test, it was determined that the reservoir was unable to overcome a production barrier thought to be well bore skin caused by filtrate from drilling mud invasion and cement resulting from sub-optimal cement placement round the well bore casing.  

The EP469 JV is planning to re-enter WE-3 in the first half of 2022 and will drill ahead to the target formations in the Kingia and High Cliff, followed by flow testing.  

The JV will undertake a 3D seismic survey over the remaining two-thirds of the permit currently only covered by 2D seismic, an area that encompasses at least three highly prospective structures. 

During the quarter, Warrego received farm-in inquiries from a range of international and domestic entities, reflecting the substantial and exciting exploration potential within the large permit area.  

Following receipt of indicative offers, a preferred farminee has been selected and negotiations are underway on a confidential basis. 

Warrego is focused on the development of onshore assets in Australia, primarily in Western Australia, and holds a 50 per cent interest in EP469, including the West Erregulla gas project, and 100% of EPA0127, potentially the largest exploration block in the Perth Basin.