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- Perth Basin oil and gas company Norwest Energy (NWE) confirms the Lockyer Deep-1 gas discovery’s potential after positive analysis and well testing
- The potential resource area has been increased from 92 to 100 square kilometres based on the estimated deeper free water level range and Norwest’s post-drill interpretations
- Norwest has confirmed an absolute open flow rate estimate at 190 million standard cubic feet per day and high quality gas at Lockyer Deep- 1
- Norwest and its joint venture partner Energy Resources are preparing for a drilling program across Locker Deep and North Erregulla, expected to commence in the fourth quarter of CY2022
- Norwest last traded at 3.7 cents per share on June 17
Perth Basin oil and gas company Norwest Energy (NWE) has confirmed the potential of its Lockyer Deep-1 gas discovery after positive analysis and well testing.
Geological evaluation
The company completed a comprehensive analysis of all data gathered through a drilling program.
Drilling cuttings have indicated that additional gas pay may exist, over and above the preliminary petrophysical analysis.
The analysis supports an indicative free water level range between 4458 metres and 4620 metres, with a best-estimate case at 4560 metres.
From the estimated deeper free water level, the potential resource area has increased from 92 square kilometres to 100 square kilometres.
“The post-well analysis confirms that we have encountered an exceptional, high-pressure gas reservoir with good evidence to support a very significant gas column that justifies a comprehensive appraisal program for which Norwest is well funded,” Managing Director Iain Smith said.
Well testing analysis
In March, well testing operations were completed over a six-day program. The program confirmed exceptional well deliverability, reservoir quality and high quality gas composition across a 25-metre interval of the Kingia Sandstone.
Norwest said it achieved a maximum sustained flow-rate of 102 million standard cubic feet per day (MMscf/d) was achieved through a 76/64″ choke, with a maximum instantaneous gas flow rate of 117 MMscf/d – one of the highest rates recorded onshore Australia.
Key insights from the analysis includes an absolute open flow rate estimate at 190 MMscf/d and high quality gas; estimated at 87.5 per cent methane and 3.9 per cent carbon dioxide.
“These post-test results once again confirm the quality and potential commerciality of the Lockyer Deep discovery,” Mr Smith said.
“While additional drilling is required, we are extremely encouraged by the early indications of significant overall resource potential, particularly when comparing the estimated resource-connectivity from the recent well test to the area of the broader structure.”
Upcoming drilling
Norwest and its joint venture partner Energy Resources, a subsidiary of Mineral Resources (MIN), are preparing for a drilling program across Locker Deep and North Erregulla.
The parties are aiming to commence a two well back-to-back program in the December quarter.
Drilling is subject to land access agreement, regulatory approvals and rig availability.
Norwest last traded at 3.7 cents per share on June 17.
