Join our daily newsletter At The Bell to receive exclusive market insights
- Norwest Energy (NWE) shares spike after the company reported what it believes to be a significant gas discovery within its Lockyer Deep-1 well
- Norwest says data from the well support the case for “very significant resource potential” across the greater Lockyer Deep and North Erregulla Deep structure
- Maximum total gas of 89 per cent was recorded within the Kingis Sandstone area
- The company said it is now running a wireline logging programme to fully appraise the gas and oil deliverability of the well’s intervals
- Norwest Energy shares were up 93.8 per cent at 11:45 am AEST to trade at 1.6 cents
Norwest Energy (NWE) shares have spiked as much as 87 per cent after the company reported what it believes to be a significant gas discovery within its Lockyer Deep-1 well.
The well is situated on exploration permit 368, which is a joint venture between 20-per-cent-owner NWE and 80-per-cent-holder Energy Resources — a subsidiary of ASX-lister Mineral Resources (MIN).
Since its update in late August, Norwest said the bottom hole was drilled from a depth of 3097 metres to reach a total depth of 4274 metres in the Holmwood Shale on September 6, 2021.
The top of the Kingia Sandstone area was intersected at 4041 metres and accompanied by elevated gas levels from 4041 metres to 4067 metres, recording maximum total gas of 89 per cent.
Norwest said no gas water contact is evident based on available data, which it affirms support the case for “very significant resource potential” across the greater Lockyer Deep and North Erregulla Deep structure.
According to Norwest, elevated gas readings were observed within the High Cliff Sandstone across 42 metres gross, with additional hydrocarbon potential also encountered within the shallower Dongara and Wagina Formations.
The company said it is now running a wireline logging programme to fully appraise the gas and oil deliverability of the well’s intervals.
Norwest Energy Managing Director Iain Smith said the discovery is set to be transformational for the company.
“The success of Lockyer Deep-1 has uncovered a significant conventional gas discovery,” he said.
“We eagerly anticipate the results of the wireline testing program and look forward to updating shareholders on the forward appraisal program once results are available.”
Norwest Energy shares were up 93.8 per cent at 11:45 am AEST to trade at 1.6 cents.
