Norwest Completes First Stage of Arrowsmith 2 Fracture Stimulation

Norwest Energy has completed the first stage ofthe hydraulic fracture stimulation program on the Arrowsmith-2 well is now complete.

Arrowsmith-2 was drilled in June2011, and is located in exploration permit EP413, northern Perth Basin, Western Australia.

The well is now undergoing clean up and flow back operations utilising the Expro well test equipment. These operations are expected to continue for a number of days, with fluid and gas flow rates being closely monitored.

With completion of first satge at Arrowsmith-2, the Halliburton frac spread is now in the process of rigging down and mobilizing to the next well in the joint Norwest/AWE program. When the frac spread has completed operations on the AWE well, it will return to Arrowsmith-2 in order to carry out second stage in the program – the hydraulic fracture stimulation of the Irwin River Coal Measures(IRCM). The IRCM is approximately 330m thick in this area of the Basin.

The Arrowsmith-2 campaign will be conducted over six to eight weeks in conjunction with AWE Limited to maximise cost saving benefits by sharing the usage and associated costs for equipment and services. Once the well has been stimulated, results from the well testing program will enable Norwest to establish the viability of the various target zones for future shale gas production throughout the field.