Work has begun on two test wells that could unlock Australia’s biggest undeveloped onshore gas field .
The first well in the program at the Warro gas field, Warro-5, in the mid-west of Western Australia, was spudded by Transerv Energy at the weekend and is expected to take 28 days to reach the planned total depth of 4,250m.
The well, is being drilled by the Enerdrill Rig-3. Transerv will then drill Warro-6 before undertaking reservoir stimulation and testing of both wells.
The study indicated the Warro wells may be capable of delivering 4-10 billion cubic feet of gas each and more if water can be reduced or avoided.
The study also confirmed an in-place gas resource of 8-10trillion cubic feet with potentially 3-4trillion recoverable. Warro-5 and 6 are designed to demonstrate the ability of wells in the Warro Field to flow gas at commercial rates.
The drilling of Warro-5 and 6 is of no cost to Transerv because the wells will be funded through the existing farm-out arrangement with Alcoa of Australia.
Under this agreement, Alcoa can earn up to a 65% interest in the field by spending $100million. Alcoa has invested approximately $50million to date (resulting in a 43% interest) and these wells are expected to cost a further $30-40million, depending on results.
The Warro Field is located 200km north of Perth and 30km from the DBNG and Parmelia pipelines, meaning the field is can provide gas to markets along both pipelines.
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