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A project in the Perth basin. Source: Norwest Energy
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  • Norwest Energy (NWE) is reporting a delay and cost blowout during casing at its joint venture Lockyer Deep-1 conventional gas discovery well
  • The oil and gas explorer says an issue occurred when production casing was being run from surface to total depth with the cement not hitting the annulus
  • NWE believes the issue relates to a wiper plug which is held up in the casing hanger, with the cement and plug now being milled out before re-cementing
  • The company believes the delay will be minimal, but the time and extra cost may total up to $5 million for the joint venture partners
  • Before the market open, shares in Norwest Energy are sitting at 2.6 cents each

Norwest Energy (NWE) is reporting a delay and cost blowout during casing at its joint venture Lockyer Deep-1 conventional gas discovery well in the Perth basin.

The oil and gas explorer explains an issue occurred when production casing was being run from surface to total depth.

Specifically, cement was not hitting the annulus during casing, likely because of a wiper plug that is held up in the casing.

NWE said as a result, the cement and plug was now being milled out so as to attain well access and re-cement the production casing.

The rig will remain on location in the basin to progress the milling operation while additional milling equipment is being sourced just in case.

The company said the delay to the wider production testing of the Kingia Sandstone reservoir should be mininal.

However, the additional time and equipment to case the well could cost Norwest and its JV partner Energy Resources an additional $5 million.

Norwest Energy Managing Director Iain Smith said the delay was unfortunate, but the company was well-placed to push through the issue.

“While this operational event is a frustration we do not anticipate a material delay to the production testing program,” Mr Smith said.

“As such we remain on track to test the exceptional quality Kingia reservoir during Q4 CY21, whereupon we expect to confirm that the Lockyer Deep-1 discovery is one of the highest deliverability onshore gas reservoirs in Australian history.”

Before the market open, shares in Norwest Energy were sitting at 2.6 cents each.

NWE by the numbers
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