AWE warns of massive write-down at BassGas
PERTH (miningweekly.com) – Oil and gas company AWE has warned of a A$100-million to A$110-million noncash impairment on the carrying value of its BassGas asset, in Victoria, for the full year.
Joint venture partner Origin Energy has provided a preliminary reassessment of the reserves for the Yolla field, based on new data obtained from the recently drilled Yolla 5 and 6 development wells, which resulted in a reduction in the estimated original gas in place for the field.
Origin has said, however, that further technical work was required to validate this estimate.
AWE has chosen to adopt the preliminary reassessment of the field and has reduced its share of reported remaining 2P reserves for the Yolla field by 5.5-million barrels of oil equivalent, down to 13-million barrels of oil equivalent.
After the recent 19.3-million barrels of oil equivalent increase in the 2P reserve at the Sugarloaf project, the Yolla reduction represented some 5% of the company’s total remaining 2P reserves of around 100-million barrels of oil equivalent.
“The updated reserves at Yolla will result in less gas production later in the field life, but, overall, it is not expected to have a material impact on production or cash flow during the next three to four years,” said AWE MD Bruce Clement.
“We anticipate production from the field will increase to a rate close to the facility’s capacity of 76 TJ a day, once the Yolla 5 and 6 development wells are brought on stream.”
Clement said the company would now consider accelerating development feasibilities for the Trefoil field, in an adjacent permit, to determine if its 2C contingent resource of 17-million barrels of oil equivalent could be developed earlier as an incremental project to Yolla production.
“AWE will continue to focus on progressing its major development projects, particularly the appraisal drilling and early development of the Waitsia gas project, in Western Australia.”
Meanwhile, AWE would also undertake detailed assessment of the Yolla field reserve, prior to the release of a reserve and resource report.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation