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Norwest Energy (ASX:NWE) - Managing Director, Iain Smith
Managing Director, Iain Smith
Source: The Market Herald
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  • Norwest Energy (NWE) opens the trading day green after increasing the potential resource area of its Lockyer Deep/North Erregulla Deep structure in WA’s Permian Basin
  • The company says after revising its interpretation of available seismic data for the structure, it has increased the potential resource area from 66 sqkm to 92 sqkm
  • In its revised interpretation of the structure, Norwest included several datasets from seismic reprocessing in August alongside data from the Lockyer Deep-1 well
  • Managing Director Iain Smith says the company now plans to begin production testing at the Lockyer Deep-1 well, though the timing of this program is still undetermined
  • Shares in Norwest Energy are up 8 per cent and trading at 2.7 cents each at 10:14 am AEDT

Norwest Energy (NWE) has opened the trading day green after increasing the potential resource area of its Lockyer Deep/North Erregulla Deep structure in WA’s Permian Basin.

The junior oil and gas explorer said after revising its interpretation of available seismic data for the structure, it has increased the potential resource area from 66 square kilometres to 92 square kilometres.

According to Norwest, resource update came after the company revised its interpretation of available seismic data for the area, incorporating several new datasets from a seismic reprocessing program taken on in August this year.

Norwest also incorporated data from the Lockyer Deep-1 well, at which the company reported a significant gas discovery in September, into the resource re-interpretation.

Managing Director Iain Smith said the company would now look to begin production testing at the Lockyer Deep-1 well, though the timing of this planned program was still undetermined.

“Having taken a conservative approach to mapping the structure prior to drilling Lockyer Deep-1, we are pleased to present our revised interpretation that demonstrates the true potential of the discovery,” Mr Smith said.

Today’s resource area increase comes primarily from the southern section of the Lockyer Deep/North Erregulla Deep structure, which Norwest had previously thought to be separated from the main discovery by an east-to-west trending fault.

After reinterpreting its available data, this southern zone has now been included in the potential resource area.

Norwest has a 20 per cent interest in the Lockyer Deep discovery in a joint venture with Mineral Resources (MIN) subsidiary Energy Resources, which owns the remaining 80 per cent and acts as the operator of the project.

Norwest said its interpretation of the Lockyer Deep/North Erregulla Deep structure is now broadly consistent with Energy Resources’.

Shares in Norwest Energy were up 8 per cent and trading at 2.7 cents each at 10:14 am AEDT. The company has a $125 million market cap.

NWE by the numbers
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