Norwest Energy Announces Arrowsmith-2 Northern Perth Basin Update
Norwest Energy NL reports that Arrowsmith-2 core analysis is essentially complete, and together with the interpretation of the extensive wireline suite, indicate that all five targeted zones have potential to flow gas following hydraulic stimulation treatment.
The program was originally scheduled to commence on 1 September 2011, however as previously reported, due to a third party referral to the Environmental Protection Authority (EPA), the start date for the hydraulic stimulation program of Arrowsmith- 2 was deferred. Subsequent to the EPA determination to not assess the referral, the Department of Mines and Petroleum (DMP) granted approval for Norwest to proceed with the program.
Even though Norwest now has both the EPA decision and DMP approval, there has been insufficient time available to conduct the hydraulic stimulation program prior to the equipment being mobilized to its next contract in the Northern Territory. It is currently anticipated that at the completion of the Northern Territory program, the equipment will return to the northern Perth Basin later in 2011, at which time the Arrowsmith-2 campaign will be resumed.
These delays have had a financial impact on the overall cost of the program, however Norwest is currently carried by Bharat PetroResources through the greater part of the revised budget and Norwest expects its contribution to final costs will be less than $500,000.
Peter Munachen, Norwest Chief Executive Officer commented “The last month has been somewhat frustrating as we awaited both the EPA decision and DMP approval. Added to that was the delay in receiving the much awaited core results, however these results are positive, and reinforce the interpretation of the log suites, so we can tick that box. This has been somewhat over-shadowed by the consequential effect of the delays that now sees the equipment heading to the Northern Territory before we can implement our program, however it has taken a long time to get this far so another small delay, whilst inconvenient and unfortunate, is minor in the total scheme of things”.
The Arrowsmith-2 drilling and evaluation program has been extremely successful, with the hydraulic stimulation and flow test program now the remaining phases to be undertaken to complete this proof of concept, and to establish the potential of the field.
Data acquired indicates that all objectives - shale gas in the Kockatea, Carynginia and Irwin River Coal Measures (IRCM), and tight gas in the High Cliff Sandstones (HCSS) have the potential to flow gas following hydraulic stimulation. This offers Norwest the unique opportunity to assess numerous high potential targets from one well.
Norwest has obtained a comprehensive dataset from the Arrowsmith-2 well including mud logs, two full cores (101 meters in total), 30 mechanical rotary cores and an extensive wireline suite (including image logs).
Source: Norwest Energy