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- Norwest Energy (NWE) spent the June quarter progressing activities within its Lockyer Deep joint venture (JV) gas project in WA’s Perth Basin
- Production testing and analysis were conducted at the Lockyer Deep-1 well which determined a maximum flow rate of 117 MMscf/d, one of the highest rates recorded in onshore Australia
- Norwest and JV operator, Energy Resources, plan to drill a two-well program later this year to target gas potential within the Lockyer Deep/North Erregulla Deep structure
- After raising over $18 million during the quarter, Norwest has a healthy cash balance of $22.8 million to support ongoing exploration
- Company shares are up 4.88 per cent to trade at 4.3 cents at 1:58 pm AEST
Norwest Energy (NWE) has recapped the June quarter period which largely focused on the Lockyer Deep gas project in WA’s Perth Basin.
In late March, NWE’s joint venture partner Energy Resources (operator of the EP368 and EP426 permits in the Perth Basin) completed production testing operations at the Lockyer Deep-1 well.
This work aimed to determine its potential and gas composition across the 25-metre perforated interval of the Kingia Sandstone.
This resulted in an instantaneous gas flow rate of up to 117 million standard cubic feet per day (MMscf/d) being achieved, which is one of the highest rates recorded onshore Australia.
Subsequent analysis determined the well’s absolute open flow rate to be 190 MMscf/d, with an estimated 70 billion cubic feet (Bcf) to 110 Bcf gas-in-place connected to the Lockyer Deep-1 well.
Following the positive analysis and well testing, the potential resource area of the Lockyer Deep-1 gas discovery increased from 92 to 100 square kilometres.
Energy Resources has been preparing for further drilling across the Lockyer Deep and North Erregulla Deep structure with a two-well back-to-back program scheduled to begin in the December quarter.
The first well, North Erregulla Deep-1 (NED-1), will test the structural high 8.5 kilometres to the southeast of Lockyer Deep-1 and is designed to confirm the presence of gas.
Additional planned wells at Lockyer Deep include Lockyer-2, three kilometres northeast and down-dip of Lockyer Deep-1, and will confirm the presence of gas within the Kingia Formation to validate the current estimate of an approximately 800-metre gas column.
The joint venture is also planning the Lockyer-3 and Lockyer-4 appraisal wells, with final locations and timing to be confirmed based on results of the first two wells.
Regarding its finances, Norwest raised $15 million through a placement in April, as well as a $3.3 million share purchase plan. The money was predominantly used for activities within the Lockyer Deep project.
At the end of the quarter, Norwest has about $22.8 million in cash, giving it a strengthened balance sheet to fund its net share of a comprehensive appraisal and ongoing exploration program across the Lockyer Deep discovery and adjacent prospects.
Company shares were up 4.88 per cent to trade at 4.3 cents at 1:58 pm AEST.
