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Norwest Energy N.L. ASX Annoucement

06 Oct 2011

Norwest Energy NL is currently focussed on two main regions – WA’s northern Perth Basin and southern England’s Wessex Basin. These regions have proven petroleum systems and are close to major markets, yet they are under-explored..

In May/June 2011, the northern Perth Basin shale gas well EP413/Arrowsmith #2 was successfully drilled. Shale sequences exist throughout the Basin, and this well will evaluate the potential of EP413 shales to flow gas at commercial rates. The Basin is adjacent to the pipelines feeding the SW domestic market where there is strong unmet demands and a high gas price. With these commercial drivers and the right flow rates, the northern Perth Basin could become Australia’s first commercial shale gas venture in the growing global phenomenon of “unconventional” shale gas production. Norwest will commence hydraulic fracture stimulation and well testing of Arrowsmith-2 in Q4 2011..

Elsewhere in the northern Perth Basin, Norwest has equity in the Empire managed EP368/EP426 JV which hosts the North Erregulla prospect, holds a 6.278% working interest in the producing Jingemia oilfield, and a 1.25% overriding royalty interest in the offshore Vulcan Basin – Timor Sea Puffin Project operated by AED and Sinopec..

In the UK, Norwest has interests in three onshore licenses in southern England’s Wessex Basin – PEDL238 (Dorset), PEDL239 (Isle of Wight) and PEDL089 (Hurst Castle project area). These blocks are near the Wytch Farm oil field – indeed the company’s Dorset block is immediately north of the field. Wytch Farm has produced more than 400MMbbls of oil and is believed to hold another 100MMbbls of recoverable oil. Norwest believes all three of its Wessex Basin licenses have significant untapped potential for new hydrocarbon discoveries.