Norwest Receives Nod To Frack

Norwest Energy NL has received the necessary go-ahead from the Western Australian Department of Mines and Petroleum (DMP) to commence hydraulic fracture stimulation in the Arrowsmith-2 well in EP413.

The DMP approval followed the review and acceptance of all necessary documentation including the Arrowsmith-2 Environmental Management Plan by the Environmental Protection Authority (EPA), a company update said on Wednesday. (this document can be viewed at the Norwest website)

Norwest which was to commence stimulation operations in early  September, had to suspend them due to a third party referral to the EPA.

However, the company, despite having the EPA decision and DMP approval, does not have adequeate time to conduct the complete hydraulic fracture stimulation program before the equipment is mobilised to its next contract in the Northern Territory.

Hence, it is considering all options available to gain maximum operational advantage and cost benefits prior to the spread departing the Basin.

On completion of the Northern Territory program, it is expected the frac spread will be relocated back to the northern Perth Basin later in 2011, by when the Arrowsmith-2 campaign will be resumed.

The participants in the EP413/Arrowsmith Joint Venture are Norwest Energy NL (Operator) 27.945%, AWE Limited (via subsidiary Arc Energy Ltd)  44.252% and Bharat PetroResources Ltd 27.803%. (ENDS)