AWE Limited (ASX: AWE), as Operator of Permits L1/L2 in the Perth Basin, Western Australia, advises that as at 06:00 hours (6.00am) AWST today, the Senecio-3 appraisal well had drilled an 8 ½ inch hole to a revised Total Depth (TD) of 3,370m.

The Dongara/Wagina formation was intersected from 2,635m to 2,759m which is in line with AWE’s initial prognosis.

Elevated gas shows were observed below the Dongara/Wagina and it was decided to deepen the well beyond the original TD of 2,783m to a revised TD of 3,370m. Current status of operations is that the well has been drilled to a revised TD of 3,370m and wireline logging is in progress.

The Senecio-3 appraisal well is designed to test the unconventional gas potential in the western side of the Senecio reservoir. Core samples and log data will be collected and sent for analysis and AWE will not conduct hydraulic fracture stimulation on Senecio-3 at this stage.

If the results are positive, AWE anticipates commencing the approvals process for the first phase of the Senecio unconventional gas field development. The Senecio-3 well could potentially be completed as a production well in a future field development.

The Senecio-3 appraisal well is located on agricultural land approximately 14.5 kilometres east of Dongara, Western Australia, and 7 kilometres from the operating Dongara gas plant.