Australian energy company AWE has started selling gas from Waitsia project in the onshore Perth Basin.
Stage 1A of the project cost $18million and involved connecting the Waitsia-1 and Senecio-3 gas wells to the upgraded Xyris production facility.
The facility has been successfully commissioned and gas is being delivered to the Parmelia pipeline, AWE said in an online statement.
Operator AWE − which owns 50% of the project, the remainder belonging to Origin Energy Resources − is now moving towards Stage 2, which involves a full field development that would increase production capacity tenfold.
Two new appraisal wells are slated for drilling in 2017.
AWE managing director David Biggs said: “The first gas sale from the Waitsia gas project represents a major milestone for AWE.
“The Waitsia gas field was discovered less than two years ago and we moved quickly to appraise the asset ahead of a final investment decision (FID) for Stage 1A in January 2016.
“Engineering and construction work was completed on schedule, and first gas achieved less than nine months after FID on time and within budget.
“This is the first step towards full field development of the Waitsia gas project, which will deliver significant revenue growth for AWE from 2020, and highlights the strength of our technical and operating capabilities.”
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