AWE Ltd. has confirmed the extension of the Waitsia Field in Australia with the Waitsia-3 well encountering natural gas shows in the Kingia and High Cliff sandstone reservoirs, the company said in a July 4 news release.

The gross Kingia reservoir interval of 52 m contains 20 m of net gas pay. Reservoir quality was described as excellent and being among the best observed in the field so far. The company said the Kingia net reservoir interval in Waitsia-3 is about double that of other wells in the field.

“The substantial thickness of the Kingia reservoir, combined with exceptional porosity, net pay and low levels of total inerts, confirms excellent reservoir quality in the southern extent of the Waitsia Field,” AWE CEO and Managing Director David Briggs said. “The observation of gas below the previously interpreted GWC [gas-water-contact] may also have positive implications for the rest of the field and provide new appraisal and exploration opportunities within the permits.”

While the Kingia reservoir exceeded AWE’s expectations, the High Cliff sandstone reservoir was gas-bearing but thinner than predicted, AWE said in the release. Preliminary analysis indicates a tight reservoir.

Waitsia-3 was drilled to a total depth of 3,612 m. The Kingia reservoir was penetrated at 3,211 m measured depth below rotary table (MDRT), while the High Cliff sandstone was hit 80 m deeper than predicted at 3,362 m MDRT due to a thicker than expected section of Kingia sandstone and Bit Basher shale, the release said.

Next steps include further analysis and evaluation of the Waitsia data. The company plans to spud the Waitsia-4 appraisal well in the first half of July, Briggs said.

“The combined data from Waitsia-3 and Waitsia-4 will allow us to review our estimated reserves and resources for the entire Waitsia Field, and subject to Waitsia-4 results, we anticipate a further upgrade to reserves within the second half of calendar year 2017,” Biggs added.