- Norwest Energy (NWE) has approved a joint venture agreement with Energy Resources to drill at Lockyer Deep in the first half of 2020
- The well is located approximately 15 kilometres east of the Waitsia gas field and near Strike Energy's Erregulla-2 gas discovery
- Energy Resources has secured land access to the well location for preparation and construction of Lockyer Deep-1 well pad
- Norwest Energy remains flat and shares are trading for 0.4 cents apiece
Norwest Energy (NWE) has signed a joint venture with Energy Resources to drill the EP368 exploration well at Lockyer Deep in the first half of 2020
The well is located approximately 15 kilometres east of the Waitsia gas field and near Strike Energy's Erregulla-2 gas discovery.
Lockyer Deep-1 offers the highest geological chance of success (GCoS) for testing of the Permian Kingia/High Cliff conventional gas play, in which Norwest estimates prospective resources of up to 1.12 trillion cubic feet of gas (gross, recoverable)
The company estimates of prospective gas resources (recoverable) for the Kinfia and High Cliff formations at Lockyer-North Erregulla Deep as follows:
Managing Director Iain Smith says that in 2020, Norwest will participate in a well that has the potential to be truly transformational for the company.
"Recent exploration success within the Kingia/High Cliff play has resulted in a quantum shift in the way the industry views the basin and we are fortunate to be perfectly placed within the play's sweet spot," Iain said.
"With a 100 per cent success rate for the three wells that have targeted this play in recent times, we hope to build on that success to make it four from four," he added.
Energy Resources has secured land access to the well location for preparation and construction of Lockyer Deep-1 well pad.
The company has completed a placement to sophisticated and institutional shareholders raising $3.3 million and has opened a share purchase plan to existing shareholders.
Norwest Energy shares remain flat and trading for 0.4 cents apiece at 2:35 pm AEDT.