The West Erregulla joint venture (Strike Energy Limited and Warrego Energy Limited) have made a significant gas discovery in the Kingia Sandstone at the West Erregulla-2 (WE-2) well in the North Perth Basin, Western Australia.
WE-2 was drilled in EP 469 which is adjacent to and targeting analogous Permian gas sands of a similar size and nature as the Waitsia gas discovery.
According to Warrego, Logging While Drilling tools have been recovered successfully and log interpretation has been completed.
The first of two primary targets, the Kingia Sandstone, was intersected close to prognosis at 4,753 metre Measured Depth Below Rotary Table (MDRT).
The formation was substantially thicker than anticipated, extending to a depth of 4,870 metres MDRT.
A 97 metre gas column was identified which includes a 67 metre section comprising several high-quality large units of clean sand with thick blocky porosity development and high gas saturation.
Net pay is estimated at 41 metres with average porosity of 14.3 per cent and peaks up to 19 per cent.
The well did not encounter a gas water contact which is consistent with the seismic amplitude modelling which supports the proposed field boundaries.
Warrego Group CEO and Managing Director, Dennis Donald, said the exciting discovery has exceeded their pre-drill expectations for the Kingia and substantially upgraded their view of the West Erregulla gas fields as a whole.
“Our interpretation of analogous Waitsia field data and the seismic amplitude model gave us confidence that West Erregulla-2 would yield results, even though the target formations are substantially deeper,” he commented.
“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.”
Drilling is continuing at a depth of 4,895 metres MDRT with the second primary target, the High Cliff Sandstones, yet to be encountered.
“For Warrego Energy, the discovery of a substantial, high quality conventional reservoir in the Kingia at West Erregulla is the culmination of 12 years of research, planning, investment and exploration activity in the North Perth Basin. The scale is material and has the potential to convert the fields from exploration to production assets in short order,” Mr Donald concluded.
The Joint Venture Partners in EP 469 are Warrego Energy Limited (via subsidiaries) 50 per cent, and Strike Energy Limited (via subsidiaries, Operator) 50 per cent.