Australian oil and gas company AWE has just uncovered what could be Western Australia’s largest onshore gas discovery in more than 50 years and its stock is on a tear.
A short time ago AWE shares were trading up 16.07% to $1.95 a piece on the ASX.
AWE today announced its new Waitsia field could be the biggest conventional onshore gas discovery in the state since the Dongara gas field was uncovered in the 1960s.
Combined with its Senecio resource, the deeper Waitsia fields could hold between 360 billion and 1.17 trillion cubic feet of gas.
Company MD Bruce Clement described the find as a “fantastic result”.
“The discovery in the deeper Kingia and High Cliff Sandstones has opened up an exciting new and substantial gas play in the north Perth basin,” he said.
The company also had a strong result after drilling the Senecio-3 well and, with Origin Energy as a 50% joint venture partner, AWE is now focussing on flow testing and determining commercial viability.
“If successful, this could deliver significant additional gas into the Western Australia domestic market and provide substantial value to AWQ shareholders,” Clement said.
Here’s a map of the gas field.
And here’s the chart showing AWE’s shares on a tear after it made the announcement to the market.