“The past decade may have been sedate in the Perth Basin, but the next 24 months have the potential to add new oil and gas resources, a new mix of companies, and a gradual transition to new energy”, writes Jonathan Craig from NVentures in this Hot Spot article.
Besides the plans for further exploration, gas developments are progressing with the Walyering field and Waitsia Stage 2 soon to be onstream and West Erregulla fully appraised and ready to be developed. Deals and M&A have also sparked into life. Meanwhile, some companies are looking to the future, making positive moves toward the energy transition with the planning of carbon capture, renewables, and low-carbon hydrogen.
Mineral Resources has two wells planned in EP368, starting with the Lockyer-2 appraisal. This will be followed by North Erregulla Deep-1 in Q1 2023 to test the southern extension of Lockyer Deep. North Erregulla Deep-1 will be an S-shaped deviated well and is aiming to test the oil potential in the Arranoo/Dongara/Wagina formations. The Kingia Formation is around 50 m updip from the Lockyer Deep-1 gas discovery, with coring planned upon confirmation of gas at North Erregula Deep 1. Lockyer-3 and -4 appraisals are also in the planning stage. Another well is planned in the neighbouring EP 426 to the east, in 2024.
“With elevated gas prices and a limited number of strategic, high-quality assets in the basin, there has been a mini-spike in M&A activity.”
Upon completion of the Mitsui/Beach joint venture (JV), the Waitsia Stage 2 development drilling campaign includes the Elegans-1 (L 2 permit) and Gynatrix-1 (L 1) wells in the Mitsui-operated acreage during 2023. The wells are targeting gas in the Kingia and High Cliff sandstone reservoirs.
Following Mitsui’s wells, Beach is planning a three to six well exploration drilling campaign. Trigg-1 in EP 320 is expected to be drilled first around Q3 2023. It is on-trend and updip from the West Erregulla gas field and the recent South Erregulla discovery and it forms a strong analogue to the 2021 Lockyer Deep gas discovery. Success would further de-risk adjacent prospects, with North Trigg-1 expected to test the northern extension of the prospect.
In EP 469, Strike Energy plans to drill Erregulla Deep-1 and Southwest Erregulla-1 following the South Erregulla appraisal drilling campaign, scheduled for late 2023/early 2024. Erregulla Deep-1 will target a relatively low-risk, high-grade conventional gas exploration prospect in the Erregulla Deep structure, covering over 20 square km at the Kingia level between the West Erregulla and Lockyer Deep gas pools. Reprocessing of 2D seismic data and calibration with the South Erregulla-1 gas discovery has identified a contiguous structure extending northwards from South Erregulla and updip into EP 469. Southwest Erregulla-1 will target the 15 square km structurally elevated fault block, which has similarities with the gas-bearing Tarantula-1 ST1 fault block on the Beharra Terrace.
“The past decade may have been sedate in the Perth Basin, but the next 24 months have the potential to add new oil and gas resources, a new mix of companies, and a gradual transition to new energy.”
Deals and Tug-of-War Takeovers
Triangle Energy has farmed out 25% working interests each to Talon Energy and New Zealand Oil & Gas in permits L7 and EP 437 late 2022/early 2023. The Bookara 3D seismic across the permits has been processed and is being evaluated. The seismic is showing early promise and identification of well targets is planned, with drilling expected in Q1 2024 in the L 7 permit.
With elevated gas prices and a limited number of strategic, high-quality assets in the basin there has been a mini-spike in M&A activity. Warrego Energy has been the subject of a takeover in recent months with an initial offer and subsequent withdrawal from Beach. Since then, Hancock Energy and Strike have been braced in a tug-of-war to acquire Warrego with a number of counter bids.
In mid-December 2022, Mineral Resources made a takeover bid for its JV partner in Norwest Energy, its partner in EP 368 and EP 426. However, Norwest recently advised its shareholders to reject the bid.
Jonathan Craig – NVentures
