Having convinced itself that the nearby, giant onshore Waitsia gas field in Western Australia’s Perth Basin is not just an anomaly, ASX listed Norwest Energy has given the go-ahead for the drilling of its Lockyer Deep gas joint venture, some 15 kilometres to the north east of Waitsia.
Norwest is confident that the combined recoverable resources from both its Lockyer Deep-1 and North Erregulla targets, which sit in the same project area, could be up to 1.1 trillion cubic feet of gas, with Norwest’s 20% share about 220 billion cubic feet of gas.
Lockyer Deep sits directly along trend with Strike Energy’s excellent Erragulla-2 recent gas discovery, which has quickly established stunning 2C contingent resources of 1.19 trillion cubic feet of gas.
Norwest is confident it is in a good neighbourhood – not only are Waitsia and Erragulla-2 close by, but Beach Energy’s Beharra Springs Deep discovery is around 35 km to the south west.
If “nearolgy” is any guide then Norwest has it in spades.
According to the company, Lockyer Deep offers the highest geological chance of success for testing the Permian Kingia/High Cliff conventional gas play that is in the combined Lockyer-North Erregulla Deep greater structure and may contain prospective recoverable gas resources of up to 1.12 Tcf.
For Norwest, the discovery of over 1 Tcf at West Erregulla-2 confirms that the 2014 discovery of Waitsia, which is now owned by Mitsui and Beach and boasts a reserve estimate of 844 Bcf, was not just an anomaly.
To fund the exploration, Norwest has rattled the tin, raising $3.3 million in a share placement. It has also put a share purchase plan in place.
Meanwhile Lockyer Deep operator and 80% owner, Energy Resources, has secured land access to the well location and is currently working to secure a suitable drilling rig.
Norwest Energy Managing Director Iain Smith said: “Recent exploration success within the Kingia/High Cliff play has resulted in a quantum shift in the way the industry views the basin and we are fortunate to be perfectly placed within the play’s sweet spot.”
"With 100% success rate for the three wells that have targeted this play in recent times, we hope to build on that success rate to make it four from four.”
The Perth gas basin is as hot as it has ever been right now with the recent discoveries of Waitsia and Strike’s West Erregulla-2 deposit.
Any kind of a sniff on Norwest’s nearby ground will be cause for excitement with such massive deposits lurking nearby.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
By Matt Birney
