Page 21 - AsianOil Week 33

AsianOil NEWS IN BRIEF AsianOil

volumes and strong free cash flow, despite the resulted in only 54% of the targeted coal seams been focused exclusively on domestic customers.
significantly lower oil prices. being exposed to the test. Despite this limitation, “The fact that the nearby Beach/Mitsui
“These results again demonstrate the as of last night (after 30 days dewatering) Waitsia gas field has been exempted from
resilience of our cash-generative operating Serocold-1 was producing at a rate of 13 mscf/d. these restrictions and will process and export
model in a lower oil price environment and Flow rates have been increasing at approximately significant gas volumes via the NWS facility is
strong operational performance across our 2.5% per day for the last two weeks. a positive for Warrego and West Erregulla,” he
diversified asset portfolio. Completion of the 6.2 kilometres south of Serocold-1, Nyanda-4 said.
ConocoPhillips acquisition in May boosted our achieved 227 mscf/d before the pump failed. “West Erregulla, located in the Perth Basin
production to record levels and we expect even Following installation of new customised pumps close to major gas pipelines and infrastructure,
stronger production in the second half. in July, Nyanda-4 is flowing gas again (after clearly has the potential to be one of the most
“Our disciplined operating model enabled 32 days dewatering) at above 70 mscf/d, also competitive sources of large-scale gas supply
us to maintain activities key to sustaining strong increasing at approximately 2.5% per day. The available to the Western Australia domestic
operational performance and stable production Company intends to cease production testing market over the next decade.
across all of our core assets, and we are now of Nyanda-4 once it reaches stabilised flows to “Additionally, we are about to commence the
targeting a free cash flow breakeven oil price of enable the performance of a Production Log 2020-21 West Erregulla exploration/appraisal
less than US$25 per barrel in 2020. Test (“PLT”). The PLT will enable the Company drilling campaign and any increase in certified
“Consistent application of our disciplined to determine the relative gas contribution of resources will be welcomed by the market,” Biggs
operating model continues to deliver cost individual seams in the well, which will help concluded.
reductions and efficiencies, with unit production inform the Company on the optimal well design WARREGO ENERGY, August 20, 2020
costs down 6 per cent to US$6.81/boe (excluding for Phase 2.
the ConocoPhillips acquisition).” STATE GAS, August 20, 2020 NZOG announces 23%
SANTOS, August 20, 2020
State Gas completes Reid’s Warrego’s gas marketing increase in Kupe reserves
unaffected by WA onshore
Following a review by the Joint Venture,
Dome appraisal the Kupe fields production adjusted 2P
(proven and probable) total reserves have
State Gas has been investigating the potential gas export restrictions been increased by some 23%. New Zealand
for a significant coal seam gas (CSG) Warrego Energy advises that recently Oil & Gas, the company’s share of total 2P
resource within the Reid’s Dome Beds at announced changes to Western Australia’s reserves have increased from 1.84 million
its 100%-owned PL231 project, since its domestic gas policy, which will restrict the barrels of oil equivalent (mmboe) to 2.26
Nyanda-4 well encountered gas in 38 metres export of onshore natural gas, will have no mmboe 2P developed rising 37% and 2P
of net coal and 25 metres of carbonaceous effect on Warrego’s gas marketing activities. undeveloped 16%. The 1P (proven) total
shales during drilling in late 20181. Warrego’s gas marketing plans have been production adjusted reserves associated with
Following the success of Nyanda-4, State focused on domestic customers and the Kupe increased by 61% (from 1.02 to 1.65
Gas embarked on Phase 1 of an exploration and Company remains in advanced negotiations for mmboe), driven by the same analysis and
appraisal programme to confirm the widespread gas sales agreements. understanding.
presence of CSG across the Reid’s Dome Gas The Western Australia domestic gas market This reserve increase not only provides
Project (PL231). The successful Phase 1 has has entered a tightening phase in line with additional volume from within the existing
included a corehole at Aldinga East-1A in the reduced output from North West Shelf (NWS). development but also from the planned further
north, a well and production testing in the centre Delays to major offshore projects, Browse and development including onshore compression
of PL231 (Serocold-1), and production testing of Scarborough, will further tighten the domestic and future well(s).
the Nyanda-4 well in the south (see Figure 1). demand-supply outlook potentially resulting in a New Zealand Oil & Gas Chief Executive
The Company is pleased to advise that the 200 TJ/d shortfall from 2022. Andrew Jefferies says the reserves upgrade is
objective of the Phase 1 programme has now With significant volumes from the Waitsia significant news for the company.
been accomplished, following confirmation of gas field approved for LNG export via NWS, “Optimising performance in existing assets is
the presence of CSG across the PL231 permit Warrego and its 50%-owned West Erregulla gas a strategic priority for New Zealand Oil & Gas.
over at least 12 kilometres, from north to south. field are well positioned to supply the Western The Kupe field was discovered by New Zealand
Importantly, CSG has been confirmed, and gas Australia domestic market. Oil & Gas in 1984, and it remains a quality
has been produced at all three locations. Warrego’s Executive Director & CEO asset. I am pleased to announce this increase
With this strong validation, necessary Australia, David Biggs, said: “The Western in reserves and would note that in the coming
data has been obtained to establish the first Australia domestic gas market has been financial year the field will have outproduced its
certified resources for the Reid’s Dome gas field. tightening for some time in line with the decline originally sanctioned reserves.”
Accordingly, the Company has commissioned in production from the NWS. Delays to the New Zealand Oil & Gas earned $15.5 million
Netherland Sewell and Associates Inc. to Browse and Scarborough offshore gas projects in cash revenue from Kupe in the 2020 financial
undertake the certification of Reid’s Dome, with will exacerbate the gap between supply and year. It’s share of production from Kupe was
the results expected to be available for release by demand from 2023-24 all the way out to the late 32,577 barrels of oil, 0.93 petajoules of gas, and
late September 2020. 2020s. 4,053 tonnes of LPG.
In the meantime, customised pumps were “Modifications to Western Australia’s New Zealand Oil & Gas has a 4% interest
installed in July and production testing is domestic gas policy were not entirely in Kupe. The other Kupe partners are Beach
continuing at both Serocold-1 and Nyanda-4, unexpected given the likely shortfall in supply Energy, 50% (Operator); and Genesis
with gas flows at both wells gradually increasing. due to delays to offshore projects, and marketing Energy,46%.
Well damage and debris at Serocold-1 has plans for our share of West Erregulla gas have NZOG, August 17, 2020

Week 33 20•August•2020 www. NEWSBASE .com P21