Norwest Identifies Dominant Gas Production Zones at Arrowsmith-2 Well

  • Frac Stage 1: HCSS and Lower IRCM (Target Formations)
  • Frac Stage 2: Upper IRCM (Target Formations)
  • Frac Stage 3: Lower Carynginia (Target Formations)
  • Frac Stage 4: Middle Carynginia (Target Formations)
  • Frac Stage 5: Lower Kockatea - not tested during PLT program (Target Formations)

With two target intervals having the potential to produce significant quantities of hydrocarbons, the selection of the target zone and location to drill Arrowsmith-3 will be finalized by integrating the results of the 3D seismic acquisition program scheduled for the last quarter of 2014.

Norwest Energy CEO Peter Munachen said that the final test work conducted at Arrowsmith-2 and analysis of results had validated the Company’s high expectations for the proposed Arrowsmith-3 horizontal well and the way forward for the Arrowsmith field.

“Overall results at Arrowsmith-2 have been very encouraging. It is the first shale gas project in Western Australia, and through the efforts of our dedicated project team and support of the Joint Venture partners we have achieved all project objectives,” Munachen said.

“It is indeed a significant milestone to have achieved these objectives, which will assist in establishing the basis for the way forward” Munachen continued.

The results of recent exploration and evaluation at Arrowsmith-2 provide validation of geological assumptions and target formations, and will assist in developing an informed pathway for further evaluation of the Arrowsmith Field and defining potential for development.

Munachen said the final test results at Arrowsmith-2 had proven the shale gas concept. This was supported by the DeGolyer and MacNaughton estimated prospective resource of 2.6 Tcf (trillion cubic feet) for the Arrowsmith field (refer to ASX release dated June 11, 2013).

At present Arrowsmith-2 is being monitored for fluid levels and pressure build up in the well. No decision has yet been made by the joint venture as to the future use of Arrowsmith-2, however a number of options around different field development scenarios will be considered in due course.


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