Permit: T/L1 Yolla (AWE 35%) Location: Bass Basin, offshore Tasmania
AWE has a 35% interest in the BassGas project that produces gas, condensate and LPG from the offshore Yolla field located in Bass Strait between Victoria and Tasmania. Raw gas is conveyed via pipeline from the Yolla platform to an onshore gas processing facility at Lang Lang in Victoria.
In production terms, BassGas remains AWE’s largest producing gas asset. In FY17, BassGas produced 1.2 MMboe, almost double that of the company’s next largest producing gas asset.
The BassGas Mid-Life Enhancement (MLE) project, designed to fully develop the field and to ensure that production continues well into the next decade, was completed during FY17.
The final phase, including the hook up and commissioning of compression and condensate pumping modules on the Yolla-A platform, was completed on time and under budget in June 2017. Production subsequently increased to nameplate capacity (approximately 67 TJ/d).
Following the August 2016 reserves downgrade, both the Operator and AWE undertook independent modelling of the Yolla reservoirs. After comparing the Operator’s model with AWE’s work, AWE revised upwards its share of 2P Reserves for the Yolla field by 13%, or 1 MMboe (before production). After allowing for production and the reclassification of a small portion of 2P Reserves to 2C Contingent Resources, AWE’s share of BassGass 2P Reserves at 30 June 2017 decreased by only 6% to 6.96 MMboe. Future development:
It is expected that the BassGas joint venture will commence marketing uncontracted gas from the Yolla field to prospective customers in the second half of 2018 ahead of the anticipated contract expiry in early 2019.
Further development plans in the region have the operator working on the nearby Trefoil Field (T/RL2, AWE 40%, 17 MMboe 2C Contingent Resource), which is similar to Yolla in terms of gas-condensate mix. Plans involve seismic reprocessing and updating static and dynamic reservoir models.
AWE shareholders are being asked to consider a takeover bid from Mitsui & Co,. Ltd.
Listed on the Australian Securities Exchange (ASX), AWE has reshaped itself to operate in a low oil price environment with a near-term focus on domestic gas production.