Argonaut has released The Renaissance of the Perth Basin, an in-depth analysis of the Perth Basin and Western Australian domestic gas market (DomGas). The report takes a deep dive into existing resources, reserves, supply, current and future demand, implications on gas prices and how the Perth Basin can play a role in meeting the future gas needs of Western Australia.
The Renaissance of the Perth Basin is a comprehensive catalogue of the Basin and the companies operating in it, which headlines AWE Limited (ASX: AWE) and Empire Oil & Gas NL (ASX: EGO) as the key players. AWE is enjoying success with its recent Waitsia discovery which has the potential to be the largest onshore gas find in Western Australia for 50 years, leading to what Argonaut sees as the Renaissance of the Perth Basin.
Empire, the largest acreage holder, has been revitalised following management changes and a $15.7m capital raising. The company has achieved steady state production from its Red Gully facility, supplying ~8 TJ/d of gas to Alcoa and is working towards undertaking the most extensive (~10,000km2 ) airborne geophysical survey for oil and gas ever in Australia, to identify future prospects and leads in the Perth Basin.
Argonaut’s analysis of future Western Australian gas pricing considers varying viewpoints from Major Producers, the DomGas Alliance, Independent Market Operator and industry sources. In Argonaut’s opinion, Western Australian gas prices are likely to increase due to the weakening Australian dollar and use of LNG netback pricing for domestic gas. Argonaut sees the DomGas price rising from $5/GJ currently, to $8-9/GJ by 2020.
After a hiatus of exploration, the recent Waitsia discovery in the shadows of the Dongara Gas Plant, demonstrates the substantial prospectivity of the under-explored Perth Basin. Argonaut is excited by what new discoveries will eventuate from The Renaissance of the Perth Basin.
Please contact your Argonaut Advisor if you would like to receive a copy of the book.