Preliminary results show AWE Limited’s Senecio-3 appraisal well, located on private property 14 kilometres west of Dongara, could yield up to 140 billion cubic feet of gas.
Extensive testing will be conducted over the next few weeks to establish the exact size of the resource.
Mr Bruce Clement, AWE’s Managing Director, said, “This is a very exciting discovery that adds considerable momentum to the near-term development potential of the Senecio gas field and other nearby prospects in the north Perth Basin.
“The positive appraisal of the Dongara/Wagina reservoir and the discovery of a potentially larger new gas play in the deeper sands have increased the likelihood of commercial development of the Senecio gas field, particularly given the proximity to existing infrastructure,” Mr Clement said.
“Gas production from the Senecio field with a low cost tie in to the AWE-operated Dongara Gas Plant, 7km to the west, would be a logical first step in commercialising unconventional gas in the onshore Perth Basin and would reinvigorate the gas industry in the Mid West of Western Australia.
Mr Marmion said AWE Limited’s Senecio-3 find was very exciting for the local gas industry, “promising to revitalise what had been a declining gas field.”
“Dongara has a long and successful onshore gas history and I am confident the company will maintain its close working relationship with the community, minimising development impact by using current pipelines and production facilities,” the Minister said.
“The State Government is committed to avoiding the debacle faced by New South Wales, which has a looming domestic gas crisis,” Mr Marmion said.
“While onshore gas is vital, we are equally committed to protecting our precious water supplies and environment, through some of the toughest regulations in the world.”