Thursday 2 June 2022

Warrego Energy Limited provides an update on the West Erregulla-3 (“WE-3”) appraisal well located in the Northern Area of the West Erregulla gas field in EP469, onshore in the northern Perth Basin, WA.

The WE-3 appraisal well was successfully re-entered on 2 June 2022 using the Ensign 970 drilling rig. The initial WE-3 well was suspended in January 2021 after encountering abnormally overpressured gas in the Carynginia Formation.

The WE-3 well has been redesigned to better manage mud weight and gas pressures at depth. The Ensign 970 drilling rig has been fitted with a Weatherford Managed Pressure Drilling (MPD) system to ensure well pressure remains within operational limits.

During its initial drilling phase, the WE-3 well encountered geological formations on prognosis and hydrocarbon shows were observed throughout the Dongara and upper Wagina sandstones. Drilling and completion are expected to take between 45-55 days and will be followed by flow testing. The well will be completed for future production.

Warrego Energy’s CEO, Dennis Donald, said:

“The WE-3 well is an important part of the West Erregulla appraisal program. It will provide valuable data that will enable the EP469 Joint Venture to confirm the extent of the Northern Area.

“Since the well was suspended, we have worked with the Operator to redesign the WE-3 well to handle the technical challenges of high gas pressures. The Ensign 970 drilling rig has been fitted with new equipment and we are keen to uncover the full potential of West Erregulla’s Northern Area.

“A positive indicator for WE-3 was the major discovery at Lockyer Deep-1 in EP426 by Energy Resources and Norwest in 2021. The discovery supports the hypothesis that gas generated from the mature north Dandaragan Trough (kitchen) has migrated through the EP469 permit area, likely filling the West Erregulla and Erregulla Deep structures, before spilling to the north and west towards Lockyer Deep and Waitsia,” Mr Donald said.