Page 21 - AsianOil Annual Review 2021

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plays, according to Warrego, which is developing been acquired over a third of the licence and the
EP469 in partnership with Strike Energy. Natta survey is expected to plug this gap.
Warrego’s CEO of Australian operations,
Sweet spot David Biggs, said: “The additional data this dis-
Warrego said the discovery added Lockyer Deep covery provides has positive implications for
to the basin’s list of “significant deep onshore Per- our planned appraisal and exploration activity
mian gas fields”, which includes Waitsia, Beharra in EP469, specifically the drilling of WE-3 and
Springs Deep and West Erregulla. the upcoming 3D seismic survey that will greatly
Waitsia, which is being developed by the enhance our understanding of multiple potential
50:50 Mitsui and Co. and Beach Energy part- structures within the block.”
nership, is considered to be one of the country’s Biggs added: “Should discoveries be made
largest onshore discoveries in the last four dec- at any of these exploration targets, these near-
ades and is set to supply the North West Shelf field structures could be tied into the proposed
(NWS) LNG project in the coming years. The Phase 2 development at West Erregulla relatively
two companies are also developing licences L11, easily.”
L22 and EP320, which contain Beharra Springs
Deep. What next
West Erregulla, meanwhile, is located within Excitement is growing over the Perth Basin’s
EP469 and is part of the Strike-led Greater Erreg- potential following a number of development
ulla project. Greater Erregulla is being developed milestones in recent years. This is a welcome
in two phases, with the first stage focusing on turn of events for the Western Australian gov-
West Erregulla and the South Erregulla devel- ernment, which moved last year to prevent sales
opment to follow. of onshore gas production to buyers outside
Warrego said in September that its analysis the state, with Waitsia having been granted an
of the four fields indicated that gas generated exception.
from the mature north Dandaragan Trough had The Australian Energy Market Operator
migrated through EP469, likely filling the block’s (AEMO) warned in December 2020 that the
West Erregulla and Erregulla discoveries before state’s potential gas supply was likely to decline
spilling into the north and west and towards at an average annual rate of 2.8% between 2021
Lockyer Deep and Waitsia. and 2030.
Warrego added: “This migration pattern is a While the local gas market was anticipated
very positive indicator for future exploration and to be well-supplied until 2026, it forecast that a
appraisal within EP469, particularly the upcom- potential gap could emerge in the final years of
ing appraisal drilling at WE-3 in the Northern the outlook.
Area of the West Erregulla gas field, which is When the WA government announced its
scheduled for the first half of 2022.” decision to ringfence onshore gas production
Strike temporarily suspended WE-3 well for local consumption it said the move was nec-
after encountering significantly over-pressured essary to ensure price stability and avoid the vol-
gas in the Carynginia formation. atility seen on the East Coast market. As new gas
Warrego said it expected the proposed Natta development milestones are marked off it will
3D seismic survey, which will be carried out this bolster political confidence as much as corpo-
financial year, to provide a “superior outcome rate conviction.
when evaluating and high grading prospects for As such, both state energy planners and
future drilling”. the industry itself will be keeping close tabs on
While 2D seismic has been conducted across the progress of EP469’s planned 3D seismic
the entirety of EP469, 3D seismic data has only survey.™

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