Exploration success in the onshore Perth Basin Bruce Clement, Managing Director Neil Tupper, GM Exploration & Geoscience BBY Investor Lunch 5 November 2014
Agenda AWE in the onshore Perth Basin Recent exploration activity Safety and environment Looking ahead Questions 3
Perth Basin exploration success Waitsia discovery adds a 4th growth project to AWEs portfolio: Perth Basin BassGas Sugarloaf Ande Ande Lumut Senecio/Waitsia 360 Bcf 2C Resources represents 30 mmboe net to AWE 91 mmboe 2P Reserves at…
Onshore Perth Basin experience 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 region, with no significant environmental incidents o More than…
6 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…
Recent exploration activity 9
Senecio-3 snapshot 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 Drilling: traditional vertical…
Significant discovery Waitsia gas field Senecio-3 delivers upside Senecio-3 well originally targeted Dongara and Wagina formations in the Senecio Field Better porosity and permeability than Senecio 2, evidence of improved quality…
Senecio-3 stratigraphy 12
Senecio and Waitsia initial volumes Table 1. Initial gross 2C Contingent Resources estimates for the Senecio and Waitsia Fields Field Reservoir Interval Original Gas in Place (Bcf) Recoverable (Bcf) P90 P50 P10 P90 P50 P10…
Early conventional development potential Early conventional gas development opportunity close to existing gas plant and pipeline infrastructure Potential low cost development in strong WA domestic market Conventional flow testing…
Drover-1 snapshot Location: 18km southeast of Green Head and 220km north of Perth Drilled: June 2014 Target depth: 2,356 metres Target: natural gas from shale and tight sandstone formations Drilling: traditional vertical…
Drover-1 next steps Encouraging wet gas shows in Kockatea Shale and dry gas shows in Carynginia Shale Some oil shows in Kockatea Shale AWE currently evaluating core samples and well data to determine forward work program Approval to…
A new cornerstone growth asset Perth Basin has existing production, infrastructure and markets Multiple plays conventional and tight gas sandstones, oil and gas shales New Waitsia discovery is a potential conventional gas play with…
Safety and environment 18
AWE is focused on safety AWE Operated 12 Month Rolling Average Performance Indicators 10.0 9.0 AWE Lost Time Injury 8.0 Frequency Injuries per million man hours 7.0 6.0 AWE Total Recordable 5.0 Case Frequency 4.0…
Protecting freshwater aquifers 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…
Monitoring soil and water 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…
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…
Looking ahead 23
Looking ahead in the Perth Basin Q3 2014 Q4 2014 Q1 2015 Q2 2015 Drover-1 Core and data analysis Hydraulic stimulation (1 week) Senecio-3 Drill Flow test Analysis Irwin-1 Preparations Drilling Senecio/Waitsia Preparations…
Looking ahead near term catalysts Exciting developments in the onshore Perth Basin o Conventional flow test of Senecio field and Waitsia discovery; further appraisal drilling anticipated in 2015 o Irwin-1 well planned for 1H CY15…
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