With the water issues now seemingly understood, fast-forward to today, and the landscape is starting to look very different.
Gas prices in Western Australia have more than doubled since 2019, averaging more than $7 per gigajoule and rising. AEMO has warned that price-sensitive industries could start pulling the pin if gas breaches $10 per gigajoule, underscoring just how tight the market could become once supply falls short.
H3 says rising gas prices have also shifted the commercial equation at Warro, allowing lower flow rates to work and reviving once uneconomic engineering solutions. H3 Energy’s recent technical review has confirmed that gas flow is not a geological issue but an engineering challenge, with the focus now on managing water and delivering sustainable production.
H3 Energy chief executive officer Nik Sykiotis said: “The AEMO report highlights the potential significance of the Warro gas field to the State’s economy. This asset has been on the backburner for many years due to hitherto mischaracterised technical challenges and regulatory uncertainty but now its time has come.”
In a market where timing is everything, Warro’s long exile may yet prove to be its greatest asset. As Western Australia heads toward tighter gas supply and higher prices, the once-maligned onshore field is starting to look less like yesterday’s problem and more like part of tomorrow’s solution.
With improved regulation, sharper technical execution and commercial work, Warro may now finally be ready to unlock its value.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
