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Norwest Energy (ASX:NWE) receives rig at Lockyer Deep-1 well

Energy
ASX:NWE
13 July 2021 10:40 (AEST)

The Lockyer Deep-1 well site during mobilisation and rig-up. Source: Norwest Energy

Norwest Energy (NWE) has noted the arrival of a new rig to the Lockyer Deep-1 well located on its joint venture exploration permit in the northern section of the onshore Perth Basin.

Exploration Permit EP368 is shared between Norwest, at 20 per cent, and operator Energy Resources — a subsidiary of ASX-listed Mineral Resources (MIN) — holding 80 per cent.

The joint venture was signed in December 2020 when NWE’s Managing Director Iain Smith said the well has the potential to be truly transformational for the company.

Energy Resources secured the Ensign 970 rig earlier this month with drilling scheduled for late in July.

Now, the “Rig-Up” process is underway and NWE clarified that an announcement regarding the drilling program will occur upon spudding of the well.

The Lockyer Deep-1 well location has been selected to test a large, fault-closed, three-way dip structure at the Kingia and High Cliff levels within the Permian gas play’s “sweet spot”.

NWE maintains its estimate that the geological chance of success for the well is around 38 per cent.

Shares were trading grey at 1.1 cents each at 9:41am AEST.

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