"Work will commence on the ground in January with first gas expected in the third quarter of 2004," said Peter Strachan, senior analyst at DJ Carmichaels.
"This project will deliver up to 67 terajoules of gas per day into south-east Australian market, generating earnings before interest and tax (EBIT) of about $30 million per annum for AWE and underwriting its profitability until 2020 and beyond.
"We expect an exploration well, with the potential to double gas reserves to 600 billion cubic feet, will be drilled on AWE's 22.6%-held, T/18P permit, adjacent to the Yolla field in the fourth quarter 2003 or first quarter 2004."
Origin has a 37.5% stake in BassGas and is partnered by Australian Worldwide Exploration 30%, CalEnergy 20% and Mitsui & Co subsidiary, Wandoo Petroleum with 12.5%.
