AWE may commence approval process for Senecio project in WA

8/12/2014

AWE may commence approval process for Senecio project in WA

NORTH SYDNEY, Australia -- AWE Limited (AWE), as Operator of Permits L1/L2 in the Perth Basin, Western Australia, reported that on Aug. 12, the Senecio-3 appraisal well was drilling ahead at a measured depth of 1,720 m in an 8 ½ inch hole following the installation of the 9 5/8 inch surface casing at 1,171 m.

The 8 ½ inch hole will be drilled to a planned section depth of 2,630 m prior to cutting up to 108 m of core in the Dongara and Wagina tight sandstone.

The Senecio-3 well will be drilled vertically to a planned total depth of 2,783 m and is designed to test the unconventional gas potential in the western side of the Senecio reservoir. Core samples and log data will be collected and sent for analysis and AWE will not conduct hydraulic fracture stimulation on Senecio-3 at this stage.

If the results are positive, AWE anticipates commencing the approvals process for the first phase of the Senecio unconventional gas field development. The Senecio-3 well could potentially be re-completed as a production well in a future field development.

The Senecio-3 appraisal well is located on agricultural land approximately 14.5 kms east of Dongara, Western Australia, and 7 kms from the operating Dongara gas plant.

The Joint Venture partners in L1/L2 are: AWE Limited (via subsidiaries) (Operator) 50.0% and Origin Energy Resources Limited 50.0%.

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