Ithaca and Norwest to Farm-in on Manuel Project, North Sea

Norwest Energy NL has just signed a farm-in agreement with Ithaca Energy Inc. on Block 11/29 in the UK North Sea.

Norwest will pay 7.5% of an exploration well total cost to earn a 5% working interest in Ithaca's highly prospective Manuel prospect. The prospect is located approximately 12 kilometers west of the Beatrice oil field of the Inner Moray Firth basin.

The test well for the Manuel prospect was spudded on February 17, 2008, and is targeting Jurassic sands. Estimated dry hole well cost is U.S. $17 million. Ithaca operates Block 11/29 and the Manuel test well which is being drilled through a turnkey arrangement.