Norwest delay at Xanadu
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West Perth-based oil hopeful Norwest Energy has said a delay in regulatory approvals has pushed back the targeted start of a seismic survey at its Xanadu prospect in the Perth Basin until at least March 2019.
Seismic work at the Xanadu prospect, in which Norwest has a 25 per cent stake, previously had a target window of late 2018.
The seismic work must be approved by the Department of Mines, Industrial Regulation and Safety.
Norwest managing director Shelley Robertson said in a statement that the company was disappointed the approvals process was taking longer than expected.
“Norwest has an excellent track record in gaining approvals expediently, such as with the drilling of Xanadu-1, however with the heightened focus that currently exists at a national
level on offshore seismic surveys, the complexity of submission documentation, and a high degree of stakeholder consultation required, this all adds significantly to the timeline,” Ms Robertson said.
“The environmental plan cannot be approved until stakeholder consultation is completed to the satisfaction of the regulator, and Norwest continues to work on this process.
“Our acquisition timeline is impacted by exclusion periods for the migration of humpback whales, western rock lobster spawning and migration, commercial fishing peak periods and school holidays.
“It is also important that acquisition is undertaken over a period when sea and wind conditions are favourable to attain the highest quality dataset possible.
“With all of this in mind, the next realistic opportunity for acquisition commences in March 2019.”
Xanadu is an offshore oil field located in close proximity to the coast, meaning it can be drilled from an onshore rig with a much lower cost than other offshore fields.
Norwest is the operator of Xanadu, while Triangle Energy holds 30 per cent, Whitebark Energy holds 15 per cent, and 3C Group IC 30 per cent.
The company also announced a board review of the business, particularly to identify opportunities in other Perth Basin oil fields.