AWE Reserves Update as at 31 December 2017
AWE’s share of 1P and 2P Reserves and 2C Contingent Resources as at 31 December 2017, including the revised estimates for the Waitsia gas field announced on 19 December 2017, is summarised below.
Summary of Notable Changes to 2P Reserves and 2C Contingent Resources since 30 June 2017
Waitsia Gas Field – Upgrade to Reserves and Resources following the successful appraisal of the southern extension of the field (announced 19 December 2017).
Ande Ande Lumut Oil Field – Reduction in 2C Contingent Resources based on assessment of the AAL-4X appraisal well results.
1. Proved (1P) Reserves at 31 December 2017
2. Proved plus Probable (2P) Reserves at 31 December 2017
3. Reconciliation of 1P and 2P Reserves at 31 December 2017
4. 2C Contingent Resources at 31 December 2017 (includes Reconciliation)
5. Notes and Reserves Consent
i. The Reserves and Contingent Resources in this report are based on and fairly represent information and supporting documentation prepared by and under the supervision of qualified petroleum Reserves and Resource evaluators Dr. Suzanne Hunt, AWE General Manager WA Assets and Engineering, and Mr Andrew Furniss, AWE General Manager Exploration and Geoscience. Dr. Hunt, a Petroleum Engineer with a Ph.D. in Geomechanics, is a member of the Society of Petroleum Engineers and has over 19 years’ experience in the petroleum sector in geoscience, field development planning, Reserves estimation, reservoir production and facilities engineering. Mr Furniss, a member of the Society of Petroleum Engineers and the American Association of Petroleum Geologists, holds an MSc in Exploration Geophysics and a BSc (Hons) in Geological Sciences and has over 25 years’ of industry experience in strategic planning, portfolio management, prospect evaluation, technical due diligence and peer review, Reserves and Resource assessment, the application of advanced geophysical technology and business development. Dr Hunt and Mr Furniss have consented in writing to the inclusion of this information in the format and context in which it appears.
ii. The estimation of 31 December 2017 Reserves and Resources have been prepared in accordance with the following:
iii. AWE intends to develop Undeveloped petroleum Reserves in material oil and gas projects. The company actively supports engineering and commercial work necessary to achieve final investment decisions for material Undeveloped Reserves.
iv. Reserves and Contingent Resources estimations for all assets are based on deterministic methods
v. Due to the portfolio effects of the arithmetic summation, 1P Reserves volumes may be a very conservative estimate, whereas 3P Reserves volumes may be very optimistic.
vi. Estimated Contingent Resources are un-risked and it is not certain that these Resources will be commercially viable to produce.
vii. Conversion factors used:
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.