Energy in the Mid West Bruce Clement, Managing Director Mid West Economic and Resources Summit 23 September 2014
Agenda About AWE Limited Operating in the Perth Basin Oil & Gas in the Perth Basin Regulatory processes Stakeholder engagement Supporting the local community Recent exploration activity Senecio-3 overview New Waitsia gas discovery…
4 About AWE Limited AWE (ASX: AWE) is an Australian, mid-cap (1 billion), oil and gas company Focused on upstream oil and gas exploration and production, both onshore and offshore AWE currently has exploration, development and…
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…
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…
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 Activity 11
Senecio-3 overview Location: 7km west 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 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…
Senecio and Waitsia formations Forward program Planning conventional flow test for late 2014/early 2015 and additional appraisal well in 2015 AWE will continue to engage with the community 14
Drover-1 overview 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 AWE currently evaluating core samples and well data to determine forward work program Approval to hydraulically fracture has been granted by DMP, after seeking advice from other departments, including Department…
Safety and Environment 17
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…
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…
Protecting local aquifers Drover-1 Case Study AWE commissioned hydrogeological consultants who prepared a groundwater study of the area to gain a thorough understanding of the local hydrogeology The deepest freshwater source identified…
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…
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 27
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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