Arrowsmith-2 Completion Operations Planned for August

Norwest Energy reported that the completion operations of the Arrowsmith-2 shale gas well in Permit EP413 - which is located onshore in the northern Perth Basin, Australia - are scheduled to commence Aug. 1. Mobilization of equipment to site is now proceeding and is expected to be operational for the scheduled commencement date of Aug. 1.

In the March 2013 ASX Quarterly Report Norwest advised:

“Arrowsmith-2 is showing excellent rates of gas flow for the size of the intervals fracked, and has produced oil and/or condensate to surface from the two intervals flowed back to date.

The flowback methodology applied by Norwest is different to that applied by most other operators in Australia testing unconventional wells – the well is being flowed back and reported by individual zones (rather than as one whole), providing a clear picture when assessing performance characteristics for each interval.

Importantly, as the current 5.5 inch well casing has proven to restrict the transport of fluids and potentially impede gas production, it is intended that smaller-diameter tubing (2.375 inch) will be installed to reduce the effect of the fluids and greatly assist the flow of gas.”

Since reporting the plans to install the completion tubing Norwest has actively been procuring and progressively taking delivery of the equipment and associated components as well as attending to planning and permitting matters. Norwest expects to be operational by the scheduled start-up date of Aug. 1.

The installation of the smaller completion provides an opportunity to fast track the High Cliff Sand Stone (HCSS) evaluation program. As this zone had returned the majority of its fluids during the initial flowback, it is advantageous to finalize the production assessment so commercial decisions on this zone may be progressed. Post HCSS testing, it is expected that the Irwin River Coal Measures (IRCM) and Carynginia formations will require longer term clean up and production testing to confirm the future appraisal and commercial opportunities of those zones.

The Carynginia zone has remained shut in during the last few months to monitor pressure build up. A short duration flow test will be conducted during the lead up period to the next phase of the program.