Warrego Energy, along with Strike Energy, announced the spudding of its second well on the EP469 concession in the Perth Basin onshore West Australia, the West Erregulla 3 (WE3).
After a safe and successful mobilization and third-party inspections, the joint venture’s Ensign Rig 970, began drilling 21 September 2020.
This is the second well to be drilled by Warrego following its WE2 well drilled last year. WE3 is the first of a three well appraisal drilling campaign on the West Erregulla field located within exploration permit 469, which Warrego Energy acquired in 2007. The field forms part of a triangle between Mitsui’s Waitsia wells and Beach Energy’s Beharra Springs Deep, which has been claimed to have the potential to hold a world-class hydrocarbon deposition.
West Erregulla-2 was spudded in June 2019 and drilled to a total depth of 5,100 m, the deepest well drilled in onshore Australia, flow tests achieved a world class maximum flow rate of 69 million standard cu ft of gas per day.
“Despite significant odds, we have taken the company to a point where Warrego Energy has the potential to become a formidable energy business,” Dennis Donald, CEO, said. “The major discoveries of the West Erregulla-2 well helped consolidate our position as a key player in the Perth Basin and has laid the foundation for exploration and appraisal success through our current campaign.
“Warrego Energy truly is on the cusp of becoming a major, international onshore, conventional gas exploration and production company. Very few oil and gas businesses start with a bare exploration block and move through a ten-year plus work sequence to eventually take that block into production. We truly believe that we will achieve that distinction,” Mr Donald added.
“We share the widely held view that natural gas is a transition fuel – one which will enable future renewable energy solutions. Natural gas, the cleanest burning hydrocarbon source, will play an increasing role in addressing climate change. LNG terminals are being constructed around the world at pace, making gas easily transportable and competitive with oil and other energy sources,” Mr Donald said. “With a significant, readily accessible, unencumbered conventional gas resource, Warrego Energy intends to play its part in the energy transition in Western Australia and Europe.”
“With the advent of the 5-year delays to the offshore Browse and Scarborough projects the energy hungry Western Australian domestic market will be an even more receptive market for Warrego’s production gas,” Mr Donald concluded.
Following the reverse takeover of Petrel Energy in 2019, Warrego Energy acquired a listing on the Australian ASX market and prospective assets in Spain. Its Tesorillo onshore project is in the final stages of gaining government permit approval. The North African Maghreb-Europe gas trunkline which makes landfall within the permit area, will provide ready access to lucrative Spanish and Portuguese gas markets.
“It’s been a roller-coaster of a ride but we’re now well on our journey to realize the true underlying value of our total asset portfolio,” Duncan MacNiven, Director and Owner of Warrego Energy, said. “Our interests in two continents, Australia and Europe, mean that we can fast-track key learning and introduce enabling technologies between each.”
“Global political and economic conditions, which had deteriorated in 2019, have only worsened this year with the coronavirus pandemic. However, with our agile, responsive approach, free from the bureaucracy and overhead burden of many traditional oil and gas businesses, we are responding well,” Mr MacNiven said. “The skills and experience inherent in our lean team reduce technical and investment risk, ensure efficient execution and maximize the potential for all stakeholders.”
“We’re concentrating on our high-grade assets with above average geological and geophysical features, excellent proximity to pipelines, infrastructure and markets and low-cost development potential,” Mr MacNiven added. “With David Biggs, a highly experienced and capable CEO, in place in Australia, Mr Donald and I are now focused on building out our European operations, engaging investors and maximizing current appraisal and production projects in Spain.”