North Sea for Norwest

Norwest Energy has entered into a heads of agreement and area of mutual interest with Nido Petroleum that paves the way for its entry into the North Sea.

Nido has previously announced that, through a partnership with UK-based company Stelinmatvic Industries, it has the option to acquire some block parts in the 22nd licensing round in the Southern Gas Basin of the UK North Sea.

Under the terms of the HOA, Nido has agreed to assign Norwest a 50 per cent interest for a consideration including reimbursement of some costs and a carry through the initial two-year evaluation program to a maximum of $300,000.

The blocks Nido has an option on contain a well that encountered 120 metres of gas bearing sandstone and that flowed at up to 2.7 million cubic feet of gas a day when drilled in 1984.

Stelinmativic’s work indicates the well is on the flanks of a substantial structure and the work program will be designed to assess the prospect.