AWE Limited (ASX: AWE), the Operator of Permits L1/L2 in the Perth Basin, Western Australia, advises that the Waitsia-2 appraisal well commenced drilling operations at 18:00 hours (6:00 pm) AWST on Sunday, 28 June 2015.

As at 06:00 hours (6.00am) AWST today, the well was at 297m Measured Depth below Rotary Table (MDRT) in a 17 ½ inch hole. The well will be drilled to a planned section depth of 1,295m MDRT before installation of the 13 3/8 inch surface casing.

The Waitsia-2 well will be drilled to a planned maximum total depth of 3,803m MDRT and is forecast to take approximately seven weeks in total to complete. The well is designed to test the gas potential in the southern extension 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-2 well and the well may be completed as a production well for a potential future field development. The approved work program for the Waitsia-2 appraisal well does not include hydraulic fracture stimulation.

The Waitsia-2 appraisal well is located on agricultural land approximately 16.5km east-southeast of Dongara, Western Australia, and 5.6km south-southwest of Waitsia-1. The well is the last of a three well drilling program planned for the Perth Basin in 2015.

The Joint Venture partners in L1/L2 are:
AWE Limited (via subsidiaries) (Operator) 50.0%
Origin Energy Resources Limited 50.0%

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.

For more information, please visit: www.awexplore.com