Weston Energy, which is part of the New South Wales-based services and technology concern, wants to make competitively priced gas available to Australian businesses, and will become Real's foundation customer with a $6 million gas prepayment to achieve that goal.

 

That will allow Real to convert resources into reserves by giving it line of sight to the supply of three petajoules per annum over an initial five years.

 

Real said the MOU with Weston was represents a significant step towards signing a binding gas sales agreement and a milestone for the emerging project.

 

 A future GSA is subject to a number of conditions, including Weston finalising gas transportation arrangements.

 

The Windorah project has assessed the 3C gas resources of the project at 672 billion cubic feet of gas.

 

Real's contingent resources include 77Bcf (1C) and 276Bcf (2C) across the Toolachee and Patchawarra formations and prospective recoverable resources have been estimated at 5.48Tcf across the three permits.

 

"We are delighted to have executed this MOU with Weston Energy, who will become our foundation customer for the Windorah gas project," managing director Scott Brown said.

 

"Real Energy is continuing to make significant progress towards the commercialisation of the Windorah gas project, in what is a transformational period for the company. 

 

"We are pleased to be part of the broader gas supply solution that delivers certainty and dependable energy supply to the Australian industry, and we look forward to providing further updates on additional gas sales agreements."

 

Weston managing director Garbis Simonian said he wanted to support Australian domestic businesses and jobs.

 

"This MOU with Real Energy is a significant step in delivering competitively priced contract gas to our industrial and commercial gas customers on the east coast of Australia," he said.

 

Real is attempting to develop basin-centred gas resources in the Toolachee and Patchawarra formations for the first time.

 

The formations are well-known throughout the Cooper Basin and Real has drilled two wells to date, with the first well fracced and tested, Tamarama-1, now showing signs of a stronger and faster build-up of pressure, with more gas was flowing the surface.

 

The well has been on intermittent flow and shut-in periods and continues to produce both gas and water to surface.

 

To date the off-structure well has produced around 85MMcf of gas and over 13,500bbl of fluids, however a plunger lift system will be installed to aid with dewatering.

 

A recent agreement with Santos, if finalised, will see raw gas sent to Moomba for processing into sales gas.