Transerv, Norwest Join Hands to Drill Xanadu Prospect in Perth Basin Off WA
Transerv Energy Ltd. announced Monday that it has formed a strategic alliance with Norwest Energy NL to facilitate the farmout and drilling of the Xanadu Prospect in TP-15 in the Perth Basin offshore Western Australia.
The Xanadu Prospect, situated near the Cliff Head and Jingamia oilfields, is estimated to hold 160 million barrels of recoverable oil reserves and can be drilled and exploited very cost effectively from a nearby, land-based drilling site.
Transerv will work closely with Norwest to finalize the farmout of the Xanadu well during 2016 with the aim that drilling activities take place during 2017. Both firms will also work together in other Perth Basin onshore permits in which Norwest holds interests, including EP368 and EP426 located to the east and adjacent to the Waitsia gas find, and EP413 which holds the Arrowsmith discovery. They plan to accelerate the exploration of these areas through farmout drilling.
Under the strategic alliance, Transerv will acquire, via a share placement, 100 million shares in Norwest for $151,000 (AUD 200,000) to participate in farmout wells and earn a material interest in all the Perth Basin areas in which NWE is a participant, namely TP/15, EP368, EP426, EP413, L14, EP492, on the successful completion of appropriate farmout arrangements.
"Transerv is reviewing a range of opportunities in the Perth Basin and sees Norwest Energy’s portfolio as complementing activities currently being undertaken at Warro," Transerv said in the press release.
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