Transerv Energy Ltd. is confident its Warro onshore gas field in Western Australia’s Perth Basin could be a valuable source of offset gas for the LNG market after announcing a twofold increase in the size of the field.
An independent report produced by Risc Advisory has indicated a contingent resource low estimate of 2.4 trillion cubic feet (Tcf) of total gas initially in place (GIIP) for Warro, which is about double the amount previously assessed by Gaffney, Cline & Associates prior to the Alcoa farm-in work.
In addition, the Risc assessment has increased the total GIIP estimate to 11.6 Tcf.
The new resource estimates follow the two latest successful wells which were drilled at Warro 4 recently.
Transerv said Nov. 19 the impressive results of the review highlighted the immense potential for Warro to become a major player in the state’s domestic gas market.
“The size of the prize we are pursuing at Warro is now substantial by any measure,” said Stephen Keenihan, Transerv managing director.
“It also demonstrates that Warro could be a highly valuable source of 'offset gas' for the global LNG companies operating in Western Australia,” he added.
Keenihan highlighted the Western Australia government’s domestic gas policy, which requires companies to reserve 15% of the gas they produce for domestic use.
“However, by acquiring an interest in gas fields such as Warro, they can source this gas from elsewhere in Western Australian to meet their 15% obligation, meaning the fields which underpin their LNG projects can be used solely for LNG production,” he said.
In addition to the recent strong results, Keenihan said there was still potential for further increases in the Warro resource.
“Another 100 meters of gas column would translate into a further 0.7 to 4.1 Tcf of gas in place,” he said.
The Warro Field is located 200 km (124 miles) north of Perth and 30 km (19 miles) from the Dampier Bunbury Natural Gas and Parmelia pipelines.
The drilling of the Warro fields ae being funded through an existing farm‐out arrangement with Alcoa of Australia. Under the agreement, Alcoa can earn up to a 65% interest in the field by spending $100 million.