H3 Energy moving to unlock giant Warro gas field with new technical insights

H3 Energy (ASX:H3E) is hoping a new technical insight may help it unlock one of Australia’s largest undeveloped onshore gas discoveries.

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Made way back in 1977 in the onshore Perth Basin in Western Australia, Warro was considered a potential game changer due to its estimated resource of five trillion cubic feet (TCF) of gas in place, its location north of Perth and proximity to the Dampier to Bunbury Natural Gas Pipeline (DBNGP).

Previous operators invested more than $100 million in 3D seismic and drilled four vertical wells to confirm the large resource. Despite those numerous efforts, attempts to achieve commercial gas flows were unsuccessful.

Now it appears that mechanical rather than geological issues may have been the problem, with the finger pointed at historical drilling techniques.

CEO, Nik Sykiotis, says H3 Energy is aiming to unlock the field via modern stimulation, and its work has been boosted by encouraging results from the updated interpretation of a Warro 3 reservoir image log.

The reinterpretation was completed by experienced stratigrapher, image log specialist and Perth Basin expert Dr Andrew Wilson of ImageStrat.

According to Mr Sykiotis, by better understanding Warro, H3 Energy has a better chance of achieving a commercial gas flow from the giant resource.

“By identifying specific, thick and laterally extensive sand packages and understanding how they are connected, we can better design appraisal activities to re-enter, test, and deviate from existing wells to delineate productive gas zones,” he said.

“This will give us a better chance of connecting the dry gas zones in the reservoir and potentially achieving a commercial flow,” he continued.

“The next step is to properly engineer appraisal drilling and begin the journey towards on-ground activities. If we can kick off from the existing appraisal wells, then it will also be a very low-cost way to test our hypothesis.”

Mr Sykiotis also suggested continuing improvements made with modern interpretation and renewed regulatory support for fracture stimulation will help H3 Energy form a targeted completion strategy, providing an opportunity to transform Warro into a high-value onshore asset in a tightening market.

H3E was steady today at 0.8c. Mkt cap $8.535 million.

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