Norwest bolsters cash position in readiness for Lockyer Deep
Norwest Energy has topped up its cash box in readiness for the drilling of its Lockyer Deep prospect in the Northern Perth Basin. The final payment of A$630,000 was received this week for the previously announced sale of its interest in production licence L14 in the North Perth Basin. Norwest is cashing up and getting set to drill Locker Deep in partnership with uber-successful resources house, Mineral Resources who is not known for backing duds.
The partners now appear to be well set to ride the wave of recent gas exploration successes being reported by Strike Energy and others in the North Perth basin that is only four hour’s drive north of Perth. The recent payment completes a three-month capital raising process that has delivered over A$4.6 million in cash to Norwest’s cashbox.
In the run-up to Christmas, Norwest Energy was busy preparing itself for a potentially transformational 2020 by adding to its Board, raising substantial cash and making major adjustments to its share register.
The Lockyer Deep exploration well will be operated by Mineral Resources subsidiary, Energy Resources, who owns an 80% working interest in the prospect that sits east of the proven trend of oil and gas fields around Dongara.
In a surprise move that perhaps signals Mineral Resources’ confidence in Lockyer Deep, the Chris Ellison led company managed to cobble together 19.9% of Norwest just prior to Xmas and is now sitting purposefully towards the top of the Norwest share register.
The L14 production licence contains the largely depleted Jingemia oil field and the licence was considered non-core by Norwest. Norwest now has clear air and cash in the bank to further its interests in its remaining core exploration permits adjacent to the recent deep gas discoveries that added significant value to both Strike Energy and Warrego Energy during 2019. Recent deep gas discoveries at Waitsia, Beharra Springs Deep and West Erregulla-2 have added over 2 trillion cubic feet of 2C gas resources in the local area.
Following this spate of discoveries, Norwest upgraded the risked potential of its 20% working interest in the Lockyer Deep Prospect which it says now has an upside of 224BCF of potential gas resources, net to Norwest.
That is potentially over 30 million barrels of oil equivalent if the well comes in.
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