Norwest has secured $3.3m funding from the institutional investors, and has opened a share purchase plan (SPP) on the same terms as the placement
Australian oil and gas explorer Norwest Energy has approved a joint venture resolution to drill the exploration well EP368 at Lockyer Deep, in the first half of 2020.
The well EP368 is located approximately 15km east of the Waitsia gasfield and directly matches with the recent West Erregulla-2 gas discovery trend, which has 2C contingent 1.19Tcf gas resources.
Norwest Energy managing director Iain Smith said: “In 2020 Norwest Energy 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 bas in and we are fortunate to be perfectly placed within the play’s sweet spot.
“With a 100% 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.”
Norwest Energy is currently re-evaluating the GCoS for the Lockyer Deep location
The location of Lockyer Deep-1 is likely to provide high Geological Chance of Success (GCoS) for testing of the Permian Kingia/High Cliff conventional gas play within the combined Lockyer-North Erregulla Deep greater structure.
In addition, the company estimates the prospective resources of up to 1.12Tcf for the structure.
Norwest Energy’s current estimate of GCoS for the location is 29%.
Based on the analogous structural setting, Beach Energy’s recent Beharra Springs Deep discovery is believed to further alleviate the geological risk at Lockyer-North Erregulla Deep.
Norwest Energy said that it is currently re-evaluating the GCoS for the Lockyer Deep location and will announce the revised estimate during December 2019.
Norwest Energy claims that it is fully funded to participate in the Lockyer Deep-1 exploration well at its 20% working interest. Energy Resources, a division of Mineral Resources, is the operator with a stake of 80%.