Revenue ramps up as gas production resumes

AUSTRALIA-based AWE experienced a 33 per cent rise in production in the fourth quarter of 2012 to 1.3 million barrels of oil equivalent, with a 13 per cent increase in sales revenue to $77 million.
The company credited the BassGas project in Victoria with making a “solid contribution” to the raised figures after operations resumed in mid-October. Production had been halted during a 10-month shut-in for phase one construction of the mid-life enhancement (MLE) project.
AWE has a 46. 25 per cent interest in the project – which supplies Victoria with gas from the offshore Yolla field in the Bass Strait – while the remaining share is held by Origin Energy and Toyota Tsusho Gas E&P Trefoil.
Sequencing of the next stage involves choosing between the installation of a compression module or conducting development drilling next summer, and will be decided by the joint venture by about mid-2013.
AWE managing director Bruce Clement said the company was in a “good financial and operational position”.
He said the Sugarloaf project in Texas, in which AWE has a 10 per cent stake, had helped to boost quarter-on-quarter production following a successful drilling program.
“We are meeting our production targets, our HSE [health, safety and environment] performance has improved [and] good progress was made on the Sugarloaf and AAL [Ande Ande Lumut] development projects,” Mr Clement said.
He added that AWE’s Perth Basin tight gas and shale gas testing program was entering the next stage, and that the company would pursue a number of exploration and new venture opportunities in Indonesia, New Zealand and WA.
“Exploration and appraisal activity is planned to increase during 2013 and we plan to drill the Lengo-2 appraisal well, offshore Indonesia, in the first half of the year,” Mr Clement said.
As operator of the Tui Joint Venture in New Zealand, AWE recently announced its plans to drill two new wells – an infill development well and an exploration well – in the offshore Taranaki Basin.
The infill development well, Pateke-4H, will be drilled to a depth of 6900m and could increase field recovery by 2.3 million barrels.
“Tui has been a valuable production asset for AWE and on current projections will continue to produce through to late 2020,” Mr Clement said.
“The Pateke-4H infill development well has the potential to deliver significant production enhancement to the Tui project.” The other Tui joint venture partners are Mitsui E&P Australia, New Zealand Oil & Gas and Pan Pacific Petroleum.

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