Transerv Energy
Warro 5 & 6 Drilling imminent
Transerv energy limited is an Australian energy investment company with interests in West Australia.
Drilling has commenced at the Warro gas field near Dandaragan Badgingarra in West Australia about 180km north of Perth.
Information on Transerv and this project in west australia is here
The imminent drilling will determine the viability of the Warro field.
We expect the share price to run on the back of positive news flow in the lead up to drilling.
TSV’s Perth Basin permits cover 2,400km2 including the Warro gas field which straddles Retention Leases R-6/R-7, located 200km north of Perth and 31km east of both the Dampier to Bunbury Natural Gas Pipeline (DBNGP) and the Parmelia Gas Pipeline (PGP).
Warro is a tight gas field with an estimated 3-4 Tcf of recoverable gas. In 2008, Alcoa agreed to a staged farm-in which includes a multi well drilling program to earn up to a 65% interest, (spending $100m minimum). To date Alcoa has earned a 43% interest and spent $53m on two wells and the acquisition of seismic surveys.
The Warro-3 and Warro-4 wells drilled by Alcoa were subjected to substantial fracture simulation and extended testing programs. While gas flows in excess of 5 mmscf/d were observed, persistent water flows interfered with the gas from the wells.
Post-acquisition of 3D seismic, an extensive review of the field by a team of USA experts led by K Shanley concluded that the wells were poorly located and water flows were most likely the result of intersecting large, deep-seated faults connected to a pressured deep water source. The review also concluded that substantial gas flows were possible if wells were positioned away from faulting.
As shown in Figure 1, the location of faulting (the blue linear features near Warro-3 & 4) is believed to be the source of the water that was previously encountered.
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