Join our daily newsletter At The Bell to receive exclusive market insights
- Warrego Energy’s (WGO) third-party review of the West Ergulla gas field has confirmed 513 billions of standard cubic feet (Bscf) of gross gas exists in one of the wells
- The third-party review was completed by Perth company, RISC Advisory, and was conducted to provide certainty to potential gas buyers
- To put the discovery in perspective, Warrego Managing Director Dennis Donald said the company had to drill three wells at the nearby Waitsia field before uncovering similar volumes
- The West Erregulla gas field is located onshore within the Perth Basin in Western Australia and is part of a 50/50 joint venture project with Strike Energy
- At this stage, Warrego is in discussions with a number of potential gas buyers and is actively progressing commercialisation options
- The company will start its drilling campaign at West Erregulla 3 and 4 in the second half of 2020
- Warrego has started the day up 3.13 per cent and is trading for 16.5 cents per share
Warrego Energy’s (WGO) third-party review of the West Ergulla gas field has confirmed 513 billions of standard cubic feet (Bscf) of gas exists in one of the wells.
The West Erregulla gas field is located onshore within the Perth Basin in Western Australia and is part of a 50/50 joint venture project with Strike Energy.
The third-party review was completed by Perth company, RISC Advisory, and was conducted to provide certainty to potential gas buyers and optimise term and price outcomes in negotiations for gas processing and sales.
“To achieve certified 2C Contingent Resources of 513 Bscf gross from only one well confirms West Erregulla’s status as a world-class asset with significant upside potential,” Managing Director Dennis Donald said.
“To put this in perspective, three wells were drilled on the nearby Waitsia field before similar volumes were booked,” he added.
Warrego also reported potential in the Central Area Reservoir, with an estimated 966 Bscf of gross gas in a 3C Contingent Resource Estimate.
Dennis said the company is in discussions with a number of potential gas buyers and is actively progressing commercialisation options.
“We are excited about commencing the West Erregulla 3 and 4 drilling campaign in the second half of 2020,” Dennis told the market.
“The additional data we expect to acquire over the drilling campaign has the potential to further increase our contingent resources, particularly from the Northern Area of the field which has not yet been drilled,” he explained.
Warrego has started the day up 3.13 per cent and is trading for 16.5 cents per share at 10:26 am AEST.
