Empire said the gas supply agreement (GSA) is a key foundation to support the commercialisation of these fields. The target start date for the joint venture to commence delivery under the GSA is 12 November 2012.

Gas from the new discovery wells, Gingin West-1 and Red Gully-1, will be processed at the Red Gully Gas and Condensate Plant, which will include condensate separation and storage to be trucked to the BP Kwinana Refinery.

Empire Managing Director Craig Marshall said “The condensate-rich gas will provide between 300–600 barrels of condensate per day, providing immediate revenue upon the plant being commissioned.

“Empire is keen to drill the Wannamal and Wannamal Deep structures as a Wannamal-1 well in 2012 to provide additional gas reserves adjacent to the Red Gully Gas Plant. Potential recoverable gas in the Wannamal-1 structure is 66 billion cubic feet (Bcf) of gas and 2.3 million barrels of condensate.

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“Empire is also planning additional 3D seismic over the Gingin gas field area to provide for Gingin-4 and Gingin-5 wells, also to provide additional gas and condensate to the Red Gully Gas and Condensate Plant.

“The total potential recoverable gas in all the adjacent (Gingin) prospects to provide additional gas and condensate to this plant is 205 Bcf and 9.2 million barrels of condensate. [Empire] looks forward to increasing its recoverable reserves of 30 Bcf and 2 million barrels of condensate to its 2012 goal of 100 Bcf and 5–7 million barrels of condensate by end 2012.”

Empire said it will initially offer any additional gas discovered to Alcoa.