- Norwest Energy (NWE) has upgraded the geological chance of success at its Lockyer Deep gas prospect in WA
- This means the prospect is more likely to yield success if drilled
- Norwest said the geological assessment mirrors Beach Energy’s successful Beharra Springs Deep discover
- The company and its joint venture partner, Energy Resource, plan to drill Lockyer in the first half of 2020
- Norwest shares sunk 14.29 per cent today, trading for 0.6 cents each as the market nears its close
Just two weeks after teaming up with Energy Resources to drill Lockyer Deep, Norwest Energy (NWE) has increased the geological chance of success (GCoS) of the prospect.
After taking on an internal assessment of the WA-based gas prospect, Norwest concluded the GCoS of the prospect is now 38 per cent. Previously, this figure was 29 per cent.
Essentially, a prospect’s GCoS is the probability that the discovery is economic to develop. It works out the chance that a functioning gas or oil system is actually in place under the prospect.
Norwest referenced ASX 200-listed oil and gas giant Beach Energy’s recent success at its nearby Beharra Springs Deep discovery when touting the Lockyer prospect.
According to Norwest, Lockyer mirrors Beharra Springs in terms of trending seismic lines and structures in the area.
With the two prospects so close together, the similarities between them give Norwest and its joint venture partner some improved confidence for Lockyer’s success.
“Recent exploration success by Beach/Mitsui at Beharra Springs Deep mitigates the primary geological risk for the Lockyer Deep prospect,” the company’s announcement read.
Norwest recently raised $3.75 million for the project and is subsequently funded to drill the project once a suitable rig is set up.
The company told investors today it is working with Energy Resources to secure a rig for drilling sometime in the first half of 2020.
Norwest shares sunk 14.29 per cent today, trading for 0.6 cents each as the market nears its close. Norwest’s market cap is valued at $24.26 million.