Whitebark Energy Ltd., Perth, plans a sale of its 100%-owned Warro tight gas field in the onshore North Perth basin of Western Australia following a 12-month strategic review of the asset.
Field development requires an operator with the expertise to commercialize the technically challenging field and leverage the work already completed, the company said. An outright sale, a farm-in, or an alternative transaction structure will be considered.
Warro field lies in retention lease RL7 about 200 km north of Perth and 30 km east of the main Dampier-Bunbury gas trunkline as well as the Dongara-Perth Parmelia pipeline that gives full access to the Western Australian domestic grid.
The field has a large volume of gas in place, but the 500-m Jurassic sandstone reservoir has low porosity and permeability and lies 3,750 m below the surface.
In 2008, Australia’s Alcoa entered into a $100 million (Aus.) partnership with Whitebark to fund field exploration. Four wells, Warro-3 to Warro-6, were drilled and tested and a 3D seismic survey was undertaken. Results provided valuable information and insight but did not establish a commercial plan for development.
Whitebark regained 100% interest in the field in mid-2018.
The company believes that conditions in the WA gas market have improved since that time and that a fracture stimulation program can be safely undertaken within the bounds of Western Australia’s regulatory regime.
An approved pipeline license and a Native Title Agreement with the Yued people allows for field operation through development and production.
The company has appointed Adelaide Equity Partners to facilitate the sale process.
