AWE have uncovered a gas field in Western Australia, which may be the largest onshore discovery in decades.
The new field, known as Waitsia discovery (formerly Senecio Deep) is located in the north Perth Basin in WA.
According to the company the Kingia/High Cliff Sandstone contingents in the Waitsia Field have gross contingent resources ranging from 65 billion cubic feet of gas (Bcf) to 1170 Bcf, with the best estimate to date sitting at around approximately 290 Bcf.
"Further evaluation and appraisal will be required to more accurately define the size of the accumulation and the lateral extent of the conventional and tight gas bearing sands," AWE said in a company statement.
"It should be noted that the Kingia/High Cliff Sandstone interval has not been previously penetrated in this part of the basin and represents an exciting new play with significant upside and follow-up potential."
AWE managing director Bruce Clement was ecstatic over the discovery, stating:"This is a fantastic result for AWE, the local Mid West community, and for the people of Western Australia."
"The discovery in the deeper Kingia and High Cliff Sandstones has opened up an exciting new and substantial gas play in the north Perth Basin.
"AWE believes the Senecio/Waitsia discovery could represent the largest onshore conventional gas discovery in WA since the Dongara gas field was discovered in the 1960s."
He went on to say the fields could could be brought into early production by utilising existing gas plant and pipeline infrastructure just seven kilometres from the Senecio-3 location.
"There is also substantial upside to this initial estimated gas volume that could be realised by successful appraisal of the Waitsia discovery and exploitation of the unconventional gas potential identified in the Carynginia Shale and the Irwin River coal measures.
"If successful this could deliver significant additional gas into the WA domestic market and provide substantial value to AWE shareholders," Clement said.
Since the announcement of the discovery, leaping 15% in share price from $1.68 per share to $1.98 per share at the time of publishing, and is continuing to trend upwards.