AWE Limited, operator of the L1/L2 joint venture with Origin Energy, on Monday said it has achieved the first commercial gas sale from the Waitsia gas project in the onshore Perth Basin, Western Australia.
Under the Stage 1A that cost AU$18 million (approx. $13.5 million), AWE installed new infrastructure connecting the Waitsia-1 and Senecio-3 gas wells to the upgraded Xyris production facility, the company said in its statement.
The production facility has been commissioned achieving the production capacity of 10TJ/d. Gas is being delivered to the Parmelia pipeline with Alinta Energy taking up to a maximum daily quantity of 9.6 TJ/day under a 2.5 year take or pay gas sales agreement, AWE said.
The company is now looking to move towards the second stage of the project, fully developing the field to increase the production capacity up to 100 TJ/d. AWE began the concept selection process for the Waitsia Stage 2 and two new appraisal/production wells are planned to be drilled in calendar year 2017.
1 AUD = 0.754255 USD