Australia’s MinRes unveils oil, gas reserves estimates

Diversified Australian mining firm Mineral Resources (MinRes) has released an initial oil and gas reserves estimates for its onshore Perth basin assets in Western Australia (WA) state.

MinRes' best estimate contingent (2C) reserves for its Lockyer gas prospect totals 435PJ (1.62bn m³) of sales gas and 3.3mn bl of condensate, the firm said on 16 September, with the resource located on state exploration permits 368 and 426.

The Erregulla oil project holds 2C reserves of 31.6mn bl of oil equivalent (boe) and is as one of the largest onshore discoveries since Chevron's Barrow Island field in 1964, MinRes said.

An analyst note from Australian equities research firm E&P on 16 September valued the resource at about A$500mn, saying that given MinRes has flagged a review of development and partnering opportunities a full asset sale would be unsurprising. The note suggested Australian independent Beach Energy and Japanese trading firm Mitsui could be interested, considering the firms' partnership in the 250 TJ/d Waitsia project which has a reserve life of around 10-11 years.

The 2C resource would support about five years of production at 250 TJ/d, while a 160 TJ/d plant would produce for about 7.5 years, E&P said. The strong flow rates of about 80-105 TJ/d suggests fewer wells would be needed and development costs could be reduced.

As a major lithium and iron ore producer, the miner has challenged the WA government's onshore gas export ban, previously saying that sanctioning a 250 TJ/d plant for the site depends on it receiving permits to export 85pc of the gas as LNG.

Exports of gas from onshore basins should only proceed once the domestic WA market is well-supplied, a parliamentary committee report last month suggested. This comes ahead of expected [annual shortfalls into the 2030s] (https://direct.argusmedia.com/newsandanalysis/article/2518646) as the state shuts down its coal-fired power stations.

By Tom Major