The Wet Gas Business is Drillsearch’s medium-term growth platform.
The company has existing gas discoveries across its acreage, many of which can be produced with associated liquid hydrocarbons such as LPG and condensate (“Wet Gas”). Drillsearch has existing production in the Western Wet Gas Fairway in partnership with Beach Energy. It also has a number of existing discoveries in the Western area with Santos, and in the northern area with Senex, all of which are expected to be brought into production in the short-to-medium term. In the Northern area, Drillsearch has built up a dominant land position across the liquids rich Patchawarra Trough region, with plans for a significant exploration program.
The Western Wet Gas joint venture with Santos includes PEL 513 and PRLs 131-134 formerly known as PEL 632. The permits are located in the South Australian Cooper Basin and cover the southern-central portion of the Patchawarra Trough.
In mid-2013, Drillsearch signed a strategic partnership with Santos to assist in the development of the existing seven wet gas discoveries within the permits and to pursue commercialisation of gas resources in the area. In FY2015, the joint venture drilled eight exploration wells resulting in another seven discoveries. A key element of the partnership is the agreement by the parties to a long-term Gas Sales Agreement establishing a pathway to market for gas produced from the area.
Drillsearch’s other significant joint venture in the Western Wet Gas Fairway is with Beach Energy and consists of PRLs 129 and 130 which also includes its producing Brownlow-Middleton project in the area formerly known as PEL 106 and PRLs 175-179 and PPL 212 formerly known as PEL 107. Drillsearch and its partner Beach operate a central production facility at Middleton, which acts as a hub for gas from the Brownlow, Middleton and Canunda fields, with several surrounding discoveries due to be tied in to the plant in the medium term.
For more information about activities in the Western Wet Gas Fairway please see our Operational ASX Announcements.
In the eastern section of the neighbouring PEL 182, Drillsearch and Senex are partners in the existing Vanessa-1 wet gas discovery. Vanessa-1 was successfully production tested during FY2015 and work is underway to tie the discovery into the nearby Santos pipeline network.
For more information about activities in the Northern Cooper Gas and Liquids project area please see our Operational ASX Announcements