12 years of research, planning, investment and exploration activity have finally paid off for Aberdeen’s Warrego Energy Limited who saw its shares surge 60% (ASX:WGO) following the announcement that they have made a major gas discovery in Western Australia with 50% JV partners Strike Energy Limited (the operator).
A 97m gas column was identified which includes a 67m section comprising several high-quality large units of clean sand with thick blocky porosity development and high gas saturation. Net pay is estimated at 41m with average porosity of 14.3% and peaks up to 19%.
Warrego Energy Limited Group CEO & MD Dennis Donald said: “This exciting discovery has already exceeded our pre-drill expectations and we have substantially upgraded our view of the West Erregulla gas fields as a whole. The substantial, high quality conventional reservoir in the Kingia at West Erregulla means we have the potential to convert the field from an exploration to a production asset very quickly.
The net pay of 41m is significantly thicker than analogues in the Waitsia field and underlines the potential of West Erregulla and EP469 to become an important future source of gas production in Western Australia.”
Strike Managing Director Stuart Nicholls: “This is truly an exceptional outcome. The Kingia results at West Erregulla have exceeded Strike’s highest expectations and indicate a significant discovery that appears to have higher reservoir quality than the Waitsia gas field.”
The well will be drilled to a nominal total depth of 5,200m followed by wireline logging, coring and casing and running of a production completion followed by flow testing.