AUS
NZ
UK
CA
USA
IND
Highlights:
- Resource Growth: The contingent storage resource for the Cliff Head Carbon Storage Project has increased by 58%, from 45.6 million tonnes to 72.2 million tonnes (100% basis).
- Enhanced Geological Models: Refinements in geological and dynamic modelling improve the accuracy of permeability and porosity estimates, supporting the increased CO2 storage capacity.
- Project Milestones: The updated resource assessment will be used for regulatory approvals, including an amendment to the 2024 Declaration of Storage Formation and planning for future CO2 injection rates.
Pilot Energy Limited (ASX:PGY) has announced a substantial update regarding the Cliff Head Carbon Storage Project located in the WA-31-L licence area, confirming a major increase in the project’s storage capacity. Following recent technical assessments by the company’s subsurface consultant, CO2Tech, the project’s carbon storage resource has grown by an additional 27 million tonnes. This marks a significant milestone as the project continues to progress towards the next phase of regulatory approvals.
The assessment, which was conducted by CO2Tech, a subsidiary of the renowned CO2CRC, reveals that the 2C contingent resource for the WA-31-L licence area has seen an impressive increase from 9.7 million tonnes in 2022 to 45.6 million tonnes in July 2024, and now stands at 72.2 million tonnes (on a 100% basis). This represents a 58% growth in the contingent storage resource compared to the previous estimate. The updated resource assessment, prepared in accordance with the Society of Petroleum Engineers' Storage Resource Management System, strengthens Pilot Energy’s position as it moves forward with the project’s regulatory approvals and development plans.
The increase in resource capacity stems from a detailed technical analysis of the storage formation, using refined geological models developed by Pilot Energy and CO2Tech. These models incorporate enhanced insights gained from years of study and operational data, which has contributed to a deeper understanding of the formation’s characteristics and capacity for CO2 storage.
Key improvements made to the models include updates to the reservoir heterogeneity, the reinterpretation of cement facies as a distinct unit, and the refinement of vertical proportion curves for the Irwin River Coal Measures (IRCM). These adjustments are designed to ensure more accurate permeability and porosity estimates, which are critical to determining the viability and efficiency of CO2 injection.
Additionally, CO2Tech incorporated a detailed history of Cliff Head’s production data, extending from its initial production phase to its cessation in August 2024. This data was vital in calibrating the dynamic model and refining the estimates for CO2 storage capacity, leading to more accurate projections with improved confidence intervals.
The updated assessment is now poised to support the next stage of the project, which includes submitting an application to amend the 2024 Declaration of Storage Formation and demonstrating the viability of an expanded development concept. The proposed development plan considers an injection rate of 2.5 to 2.8 million tonnes of CO2 per annum for the Cliff Head/Mentelle resource, ensuring that the project’s future phases are based on robust, data-backed forecasts.
