- Oil and gas explorer Norwest Energy (NWE) suspends Lockyer Deep-1 well with the drill rig being released from the site
- The energy stock recently hit an issue when production casing was being run from surface to total depth, which then led to the cement and plug milled out
- The delay has led to an increase in cost, which is within the original estimate at around $18.5 million, higher than the original authorisation for about $14.5 million
- Norwest is expecting to be back at the well in the first quarter of 2022 with a testing program
- Norwest Energy is up 4.35 per cent to 2.4 cents per share at 10:06 am AEDT
Norwest Energy (NWE) has suspended product testing at its Lockyer Deep-1 well, with the rig being released from the site.
The energy stock recently announced an issue occurred when production casing was being run from surface to total depth. More specifically, the cement was not hitting the annulus during casing due to a suspected wiper plug that was held up in the casing.
Following this, the cement and plug were milled out to attain well access and re-cement the production casing.
The increasing costs, resulting from well remediation, is within the original estimate at around $18.5 million, higher than the original authorisation for expenditure of approximately $14.5 million.
Norwest is expecting to be back at the well in the first quarter of 2022 with a testing program.
Managing Director Iain Smith said Lockyer Deep-1 confirms “a very significant” conventional gas source.
“We now look forward to production testing of what we believe is a high deliverability Kingia reservoir, with the test program to be conducted by early first quarter of the current year 2022 (Q1 CY 2022),” Mr Smith said.
“Our joint venture operator is pushing forward with plans to acquire 2D and 3D seismic surveys across permits EP368 and EP426, commencing Q1 CY 2022, the results of which will serve to optimise the forward appraisal and exploration drilling program.”
Norwest Energy is up 4.35 per cent to 2.4 cents per share at 10:06 am AEDT.