AWE Limited (ASX: AWE) is claiming what it says is potentially the largest conventional onshore gas discovery in WA since the 1960s.
Not surprisingly, shares in the Sydney-based oil and gas focused company have jumped 14% higher, trading at $1.92, a 52-week high.
Commenting, Mr Bruce Clement, AWE's Managing Director, said:
"Initial evaluation of the Senecio and Waitsia fields has identified 360 Bcf of gross Contingent Resources, which could be brought onto early production, utilising existing gas plant and pipeline infrastructure just 7km from the Senecio-3 location.
There is also substantial upside to this initial estimated gas volume that could be realised by successful appraisal of the Waitsia discovery and exploitation of the unconventional gas potential identified in the Carynginia Shale and the Irwin River Coal Measures."
If successful, the company say this could deliver significant additional gas into the Western Australia domestic market, and provide substantial value to AWE shareholders. The joint venture partners are AWE and Origin Energy Limited (ASX: ORG).
In a recent presentation to the Good Oil Conference, AWE said they were targeting production growth to 10 million BOE and EBITDAX of over $500 million by the end of 2018.
After today's share price jump, AWE is capitalised at $1 billion. Year to date, the shares are up 43%.
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