AWE in the Perth Basin Bruce Clement, Managing Director AWE Perth Basin Investor Site Tour 4 June 2015
Agenda Operating in the Perth Basin Oil & Gas in the Perth Basin Regulatory processes Stakeholder engagement Supporting the local community Recent exploration and appraisal success Senecio-3 tight gas appraisal Irwin/Synaphea tight gas…
Onshore Perth Basin experience Health, safety and environment are top priorities for AWE The oil and gas industry has operated in the Perth Basin for more than 50 years More than 200 wells have been successfully drilled in the…
5 Oil and Gas in the Perth Basin Coal Seam Gas is close to surface and extraction involves North Perth dewatering coal Basin seams to conventional release gas. gas, tight gas AWE is not and shale gas is exploring for 2km below the Coal…
Overview of the regulatory process In WA, the Department of Mines and Petroleum is the lead agency for administering state petroleum and geothermal legislation. Key regulatory assessment processes: Department of Mines and Petroleum…
Stakeholder engagement In addition to technical studies and demonstration of compliance with statutory requirements AWE recognises social licence as an integral part of good business practice Social licence is maintained by…
Engaging early and often Key community stakeholders: Landowners on whose land we operate Traditional owners Shire residents Regulators and decision makers: Shire of Irwin and Shire of Coorow DMP, EPA and OEPA meetings at key stages…
A vital part of the local community Long term relationship with the community AWE and its predecessors have been active in the Mid West since 1960s Strong economic contribution AWEs employment and procurement policies directly benefit…
Recent Exploration and Appraisal Success 10
Continuing Success in the Perth Basin Two significant confirmed commercial plays in AWE acreage: o Dongara/Wagina Tight Gas Play confirmed at Senecio-3 and Irwin-1. o Kingia/High Cliff Conventional Gas Play under appraisal at…
Dongara/Wagina Tight Gas Discoveries Senecio-3 appraisal well (2014) confirms commercial viability of Senecio gas field and upsized 2C Resources. Irwin-1 (2015) gas discovery proves eastern extension of tight gas play at Synaphea…
Senecio Gas Field Senecio-3 appraisal well: Location: 7km east of the Dongara gas plant Drilled: August/September 2014 Target depth: 2,783 metres, extended to 3,370m Target: natural gas from tight sandstone formations Results: Successful…
Gas Discovery at Irwin-1 Irwin-1 exploration well: Location: 8km east of Senecio-3 Results: Drilled: April/May 2015 32m gas column in the Dongara/Wagina tight gas Total depth: 4,049 metres reservoir Gas/water contact interpreted at…
Schematic Cross-Section Schematic East- West cross- section showing relationship of Dongara/Wagina discoveries and the Waitsia discovery in the Kingia Formation Different gas-water-contacts in Dongara/Wagina at Senecio and…
Senecio, Synaphea, Irwin initial volumes Table 1. Initial gross 2C Contingent Resource estimates for Dongara/Wagina discoveries Gross Contingent Field / Permit Reservoir Interval Original Gas in Place (Bcf) Resources (Bcf of gas)…
Significant discovery Waitsia Gas Field Significant new gas find at depth Senecio-3 well originally targeted Dongara and Wagina formations in the Senecio Field Waitsia Field discovered below original target - Kingia and High Cliff…
Waitsia Gas Field Senecio-3 appraisal well Discovery made by deepening Senecio-3 Positive Senecio-3 flow test results from Kingia interval (Waitsia field): o 12.3 mmscf/d average gas flow rate over a 5 hour period o Well head…
Waitsia Appraisal Program Waitsia-1 (vertical appraisal well) Location: 3km east of Senecio-3 Spudded: 14th May 2015 Planned Total Depth: 4050 m MDRT Primary Objective: Appraisal of Kingia-High Cliff Sst Planned Geological Program:…
Waitsia initial volumes Table 1. Initial gross 2C Contingent Resource estimates for the Waitsia Field Gross Contingent Field / Permits Reservoir Interval Original Gas in Place (Bcf) Resources (Bcf of gas) P90 P50 P10 1C 2C 3C…
Safety and Environment 21
Good HSE performance * APPEA Total Recordable Injury Rate (2013-2014) is 3.79 injuries per million hours worked, 23% lower than the previous reporting year (which was 4.9). No Lost Time Injuries and no reportable environmental…
Active environmental risk management Hazard Strategy/Control Introduction of weeds/dieback Machinery and vehicle inspection prior to mobilisation Install and operate a hygiene wash down station at site entrance with traffic management &…
Typical well design Well construction consists of multiple layers of steel casing plus cement to: o Reach formations of interest safely and ensure the containment of hydrocarbons if intersected o Maintain wellbore stability o Allow…
Monitoring Baseline monitoring of soil and water is undertaken prior to commencement of any drilling activities Locate a water bore down hydraulic gradient from well location and monitor before, during and after drilling activities…
Site rehabilitation Following drilling activities, AWE will restore a drill site to its original condition Site rehabilitation is a pre-planned and pre-approved activity, overseen and audited by DMP upon works completion Some…
A bright future for the Mid West Opportunity for industry and local Mid West communities to build on existing relationships Substantial additional economic benefit for WA from additional domestic gas supply Development and…
Thank you
Appendix 29
Hydraulic stimulation in the Perth Basin AWE has a track record of successful hydraulic fracture stimulation Fracture stimulation has been used since 1974 in the northern Perth Basin Seven fracture stimulation treatments in Dongara…
Code of Practice for Hydraulic Fracturing AWE helped develop and is a founding signatory to the Western Australian Onshore Gas Code of Practice for Hydraulic Fracturing. The Code of Practice commits its signatories to high standards of…
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