ASX/Media Release
18 August 2010
Origin’s recent discoveries underpin new gas sales agreement in Western Australia
Origin Energy Limited ("Origin"), Australia's leading integrated energy company, today announced that its subsidiary Origin Energy Developments Pty Ltd has signed a new contract for the sale of gas in the Perth Basin to a subsidiary of AWE Limited. The gas will be onsold to the Western Australian energy retailer Synergy.
The contract has been made possible by recent gas discoveries in the Redback area of the Perth Basin, together with existing gas reserves in local fields.
The gas sales will commence during August and will be for a period in excess of five years. Under the agreement Origin will sell up to 25 petajoules of gas subject to the confirmation of gas reserves by November 2010.
In commenting on the gas sales agreement, Origin's Executive General Manager Upstream Oil and Gas, Mr Paul Zealand said, "It is particularly pleasing to be able to commercialise this gas so soon after its discovery.
"The Redback South 1 and Redback 2 wells were drilled during the course of the 2010 financial year and both resulted in the discovery of gas, with tests on Redback South recording one of the highest gas flow rates ever recorded for an onshore well in Australia. Furthermore we are able to take advantage of spare gas processing capacity at our nearby Beharra Springs gas plant, so development costs are low and gas supplies can commence immediately.
"We are continuing with further technical evaluation and appraisal drilling aimed at increasing reserves in the Perth Basin, including the Wolf-1 appraisal well currently being drilled in the L11 license area," he said.
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About Origin
Origin Energy is Australasia’s leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing.
Listed in the ASX top 20 the company has approximately 4,000 employees, is a leading producer of gas in eastern Australia, is the largest owner and developer of gas-fired electricity generation in Australia and is a leading wholesaler and retailer of energy. The company services more than 3.5 million electricity, natural gas and LPG customers across Australia, New Zealand and the Pacific. Origin’s strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth in the ever changing energy industry. Through Australia Pacific LNG, its 50:50 incorporated joint venture with ConocoPhillips, Origin is developing one of Australia’s largest CSG to LNG project based on Australia’s largest CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to originenergy.com.au
