AWE Limited (ASX: AWE), the Operator of Permits L1/L2 in the Perth Basin, Western Australia, advises that the Waitsia-1 appraisal well reached a Total Depth (TD) of 3,507m Measured Depth below Rotary Table (MDRT) at 08:00 hours (8.00am) AWST on 8 June 2015 and preparations are now underway to commence a wireline logging program.

The Holmwood Shale was intersected at 3,490m MDRT, 10m high to prognosis, and total depth was achieved 17m into the Holmwood Shale. Wireline logs will be run over a number of intervals, including the Dongara and Kingia Sandstones.

The Waitsia-1 well was spudded on 14 May 2015 and is forecast to take approximately six weeks in total to complete. The well is designed to further test the gas potential of the Waitsia Field, comprising primary targets in the deep conventional formations in the Kingia and High Cliff Sandstones.

If the results are positive, AWE may undertake a flow test of the Waitsia-1 well and the well may be completed as a production well for a potential future field development. The approved work program for the Waitsia-1 appraisal well does not include hydraulic fracture stimulation.

The Waitsia-1 appraisal well is located on agricultural land approximately 17km east of Dongara, Western Australia, and 10km from the operating Dongara gas plant. The well is the second of a three well drilling program planned for the Perth Basin in 2015. It will be followed by the Waitsia-2 appraisal well in the second half of the 2015 calendar year.

About the Waitsia gas field

The Waitsia discovery was announced on 2 September 2014 while drilling the Senecio-3 well and has the potential to be the largest onshore conventional gas discovery in Western Australia in the last 50 years. AWE’s initial estimates for the Waitsia gas field comprise gross 2C Contingent Resources of 290 Bcf in the Kingia/High Cliff Sandstone formations. In addition, AWE has also estimated gross 2C Contingent Resources of 70 Bcf in the Senecio tight gas field and an initial estimate of 149 Bcf in the Irwin/Synaphea tight gas structures.

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