Norwest Energy NL

Norwest was removed from the ASX official list at close of trading on 12 May 2023 after MinRes compulsorily acquired the remaining shares. This ends Norwest's listed life.

registration revoked

MinRes said it holds over 90% of Norwest and over 75% of shares it offered for, so it will compulsorily acquire the rest on the same terms: one MinRes share per 1,300 Norwest shares. ASX suspension and removal from the official list follow.

business combination

Chairman Myers reaffirms advice to accept, noting Lockyer-2 cut the northern potential gas area to about 11 km2. Cash was about $8.9 million at 31 March 2023 after takeover costs, so non-accepting minorities may face dilution if more capital is needed. MinRes may compulsorily acquire at 90%.

business combination

MinRes now holds 81.46% of Norwest, satisfying the acceptance facility condition, so accepting holders may elect tax rollover relief. Offer stays open to 29 April 2023 and the terms are best and final. Follows the Lockyer-2 water result.

business combination

Lockyer-2 found excellent Kingia Sandstone but it is water-saturated, with aquifer pressure higher than expected. The free water line is now about 4,007m and the potential gas area about 11 km2, down from 102 km2. Lockyer resource potential is materially downgraded; NED-1 is next.

drilling result

With MinRes holding a majority (72.84%), Norwest appointed MinRes executives Mark Wilson and Yenna Ong as directors. Managing Director Iain Smith and director Bruce Clement resigned and Smith's services agreement was terminated. Ernie Myers stays as chairman.

director officer appointment

Lockyer-2, the appraisal well to test the Lockyer Deep-1 discovery's northern segment, spudded 15 March 2023. It is a downdip step-out; planned depth 4,451m TVDSS, about 35 days to reach.

drilling spud

MinRes declares its offer best and final: 1 share per 1,300 Norwest shares will not be raised. It holds about 70%. It warns of lower liquidity and possible delisting for holders who do not accept, and notes possible tax rollover if it reaches 80%.

business combination

MinRes secured control of Norwest, with voting power reaching 53.86% on 16 February 2023. The offer is automatically extended to 2 March 2023. MinRes will seek to appoint a majority of Norwest's directors; non-accepting holders become minority shareholders.

business combination

MinRes raised its offer to one share per 1,300 Norwest shares (7.41 cents implied, $497 million) and made it unconditional. Directors now unanimously recommend acceptance absent a superior offer, reversing their earlier reject advice. Offer closes 20 February 2023.

business combination

Operator Energy Resources contracted Ensign Rig 970 for Lockyer-2 and North Erregulla Deep-1, drilled back-to-back. This resolves the open rig-contract question; Lockyer-2 spud is targeted for late March 2023, later than the earlier December 2022 target.

contract award

Norwest's Target's Statement unanimously recommends shareholders REJECT MinRes's scrip offer and do nothing. This is the board's formal response promised earlier. The visible text gives no valuation reasoning; the rest is truncated.

business combination

MinRes's takeover offer for Norwest opened for acceptance, closing 6 February 2023 unless extended. On MinRes's 30 December price the offer is worth $0.056 per Norwest share, below the $0.06 originally implied. MinRes says it would consolidate 100% of the Lockyer assets.

business combination

Mineral Resources, Norwest's 19.9% holder and Lockyer partner, announced an off-market scrip takeover bid: one MinRes share per 1,367 Norwest shares, implying $0.06 per share and about $403 million. The bid is a 33% premium to the 15 December close, with no minimum acceptance condition.

business combination

Final Ringneck 2D data show Lead E, a faulted high of about 74 km2 between the gas kitchen and Lockyer Deep-1. Drilling needs more study, Rococo 3D data and joint venture agreement. Lockyer structure area is revised to about 102 km2 from 100 km2.

drilling result

Norwest will earn 20% of Pilbara Clean Fuels, developing a Port Hedland electrified LNG plant (0.5 MTpa initial), by funding a $300,000 six-month study. It gains an option to use plant capacity by tolling, a possible market for its Lockyer gas. No further funding obligation.

asset acquisition disposition

Post-drill review lifts Lockyer Deep's best-estimate free water level from 4,500m to 4,560m, growing the potential resource area from 92 to 100 km2. Open flow is estimated at 190 MMscf/d, with 70-110 Bcf gas-in-place connected to the well. Two-well drilling targeted Q4 2022.

resource reserve update

Norwest raises about $15M through a placement of up to 465.5M shares at 3.3c (13.2% discount), with Mineral Resources participating, plus a Share Purchase Plan of up to $3M. Funds go to Lockyer Deep completion, seismic and appraisal drilling targeting October 2022.

capital raising announcement

Lockyer Deep-1 flowed at a maximum 117 mmscfd (102 mmscfd sustained) with condensate of about 6 bbl/mmscf and low CO2 and H2S. The company calls it the highest-rate Perth Basin Permian gas well so far; flow was stopped due to sand. This confirms the 2021 discovery's deliverability.

flow test result

Revised mapping lifts the Lockyer Deep potential resource area 40%, from 66 to about 92 km2, by including the southern part previously treated as separate prospective ground. No volume is given; the operator's interpretation is broadly consistent.

resource reserve update

Logs confirm 20.2 m net gas pay in the Kingia, 16% porosity and ~500 mD permeability, with a gas column up to 800 m. Norwest expects resources to exceed the 1.12 Tcf pre-drill high case; well being completed for testing. High Cliff is not pay at this location.

resource reserve update

Lockyer Deep-1 reached 4,274 m, with preliminary results indicating a significant gas discovery in good-quality Kingia Sandstone and no gas-water contact seen. Wireline logging is under way; this is the first drilling success after the long search for a rig. Norwest holds 20%.

drilling result

Completed a placement of up to 343.75 million shares at 0.8c to raise up to $2.75 million, significantly oversubscribed, with the four largest holders (Mineral Resources ~19.7%) taking part. Funds production testing, seismic and working capital.

capital raising announcement

Lockyer Deep-1 was spudded at 23:00 on 18 July 2021, targeting the Kingia and High Cliff formations. Expected to take 35 days to reach 4,185 m TVDSS. Norwest holds 20%; gross high case 1.12 Tcf, 38% chance of success.

drilling spud

Operator signed a rig sharing agreement with Strike and a drilling contract with Ensign for the Ensign 970 rig, to take over around 7 July. Spud expected in July 2021. EP368 year 2 end date extended six months to 29 December 2021. Resolves the long rig search.

drilling scheduled

Agreed to assign its 27.945% interest in EP413 to AWE Perth (Mitsui group) for $100,000 on completion, with AWE taking over operatorship and rehabilitation liabilities from 23 February 2021. Subject to regulatory approval; ends the third-party talks on EP413.

asset acquisition disposition

Raised $2 million via placement of 333,333,340 shares at 0.6c, with the top three shareholders (Mineral Resources c.17.0%, 3C c.7.8%, Sundowner c.5.7%) taking part. Funds Norwest's 20% share of Lockyer Deep-1; rig slot timing still under discussion.

capital raising announcement

After shareholder approval on 28 February 2020, Norwest paid Sundowner $750,000 and issued 100M shares to settle the convertible loan in full. The company says it is now debt-free and funded for its Lockyer Deep-1 share. Resolves the Sundowner thread.

debt financing

The sale of the 6.278% L14 Jingemia interest to RCMA completed after DMIRS approved the title transfer. Norwest received the $630,000 balance of the $700,000 price. Resolves the pending sale thread.

asset acquisition disposition

Norwest raised Lockyer Deep-1's geological chance of success from 29% to 38% after Beach's Beharra Springs Deep gas flow (up to 46 MMscfd). Resource range unchanged at up to 1.12 Tcf gross. Operator signing of the drilling resolution awaits Mineral Resources board approval of its 2020 program.

resource reserve update

Bruce Clement joined the board as non-executive director on $36,000 a year, plus 15M incentive options subject to shareholder approval. He is the former AWE CEO who oversaw the Waitsia gas discovery, adding Perth Basin experience ahead of the Lockyer Deep well.

director officer appointment

Norwest approved the joint venture resolution to drill Lockyer Deep-1 in EP368 in H1 2020, about 15 km east of Waitsia, resolving the well-location question. Target depth about 3,900 m, up to 1.12 Tcf gross prospective gas; rig still being sourced; fully funded at 20%.

drilling scheduled

Norwest raised A$3.25M via a placement at 0.35c per share with one free 0.6c option per two shares, plus a share purchase plan of up to $500k. Funds its full 20% share of the H1 2020 EP368 well. Sundowner loan to be partly repaid ($750k) and $250k converted.

capital raising announcement

Norwest raised prospective gas resources at Lockyer Deep to a high case of 1,122 Bcf gross (224 Bcf net at 20%), with North Erregulla Deep upgraded to drillable. Chance of success is 29% and 21%. EP368 well location decision due within weeks.

resource reserve update

The new 3D seismic shows the Xanadu-1 oil discovery's updip area is smaller than expected, with likely marginal commerciality. Downdip potential is larger but in one sand and higher risk. More studies are needed before any appraisal well. Resolves the October results thread negatively.

drilling result

Norwest agreed to sell its 6.278% Jingemia (L14) interest to operator RCMA for A$700,000, with a $70,000 deposit. RCMA can walk away by 27 September. Completion is expected early Q4 2019. The company says this focuses funds on Xanadu and EP368/426.

asset acquisition disposition

The EP368 joint venture will weigh Springy Creek oil against Lockyer Deep gas for a drilling commitment well in H1 2020. Lockyer Deep prospective gas resources were raised to up to 662 Bcf gross. This slips the earlier Q4 2019 Lockyer Deep timing.

resource reserve update

Norwest identified a new Springy Creek oil prospect in EP368 (20% interest) with prospective recoverable resources of 8.6 to 61.1 MMbbl gross, at a 25% geological chance of success. These are unrisked, undrilled estimates. A joint venture decision on the next step is expected in July.

resource reserve update

Norwest signed a convertible loan with Sundowner, a related entity of director David Kennedy: up to $500,000, extendable to $1.5M, 8% interest, 12 months, conversion at $0.0025 (or $0.002 at Norwest's election). Bidders have discounted the company over its weak cash. CEO Shelley Robertson resigned; Iain Smith is the new MD.

debt financing

State approval granted for the 40 km2 Xanadu 3D seismic survey, ending the repeated delays. Mobilisation is expected mid-April, acquisition from early May 2019, with results in Q4 2019. A five-year TP/15 renewal was granted in 2018. An appraisal well will be considered afterwards.

regulatory community update

An independent review by LEAP Energy for the operator RCMA identified four prospects and four leads within the Jingemia (L14) licence. This is the first remodelling since before 2012 and follows the earlier exploration-upside evaluation. Figures are preliminary prospective volumes, not reserves.

resource reserve update

Chairman Michael Fry, a director since June 2009, left the board at the AGM without seeking re-election. Ernest Myers, an executive director of Pancontinental Oil and Gas, was appointed a director after the meeting.

director officer appointment

Xanadu 3D seismic is delayed again because regulatory approval is unfinished; the next opportunity is March 2019, versus the earlier late-2018 target. The board has started a project and corporate review, and EP413 work may resume as the fracking inquiry nears its findings.

regulatory community update

Norwest appointed KPMG Corporate Finance as corporate adviser to help maximise the value of its asset portfolio, alongside its 3C Group relationship. Bennett Greenhalgh replaces Jo-Ann Long as Company Secretary; she stays as CFO. KPMG's mandate is a strategy shift hint (inference).

director officer appointment

RCMA Australia took over as operator of the Jingemia oil field (L14) from Cyclone Energy. Norwest keeps its 6.278% interest, alongside RCMA at 60% and Cyclone at 33.722%. The BP Kwinana sales contract remains in place.

joint venture update

A 40 km2 Xanadu 3D seismic contract was awarded to Synterra Technologies. Acquisition is now expected in the second half of the June 2018 quarter, later than the earlier late-Q1 hope. An appraisal well will be considered after processing, and a five-year permit renewal has been submitted.

contract award

Joint venture partner 3C Group raised its holding to 9.9% by exercising 60m options and taking 66.5m more shares, all at 0.24c. Together this brings in about A$304k, for seismic, Xanadu wells, Lockyer Deep planning and Jingemia. This uses the rights from its February 2017 deal.

capital raising announcement

Jingemia oil field restarted on 16 December 2017 after being in care and maintenance since December 2012, with a BP Kwinana sales contract signed. Norwest's 6.278% share should bring revenue from Q1 2018. Resolves the restart thread; Xanadu seismic approvals are nearing completion.

production update

CEO Shelley Robertson, in the role since 2016 and with Norwest since 2011, joins the board as Managing Director. Non-executive director Ron Currie, appointed March 2016, resigned effective 31 October 2017. Her service terms and pay are stated to be unchanged.

director officer appointment

First-phase oil analysis shows 34.7 API crude with no H2S and very low CO2, similar to Cliff Head, confirming the analogue. Early data also suggests oil down-structure. The JV is preparing a first-half 2018 program, possibly including 3D seismic and a sidetrack.

well test result

Norwest has commitments for a placement of up to about 250 million shares at 0.4c to raise up to $1 million. It funds Xanadu appraisal and the Lockyer Deep-1 well, but needs shareholder approval at the late-November AGM, with shares issued around 6 December.

capital raising announcement

Oil was recovered to surface at Xanadu-1, confirming a discovery. The Irwin River Coal Measures show three oil sands, with 4.6 m net pay in the top sand at 66% saturation. Dongara Sandstone was absent. A side-track appraisal well is planned and a discovery notice will be lodged.

drilling result

Xanadu-1 reached a deepened 2035 m and found hydrocarbon-bearing reservoirs, shown by elevated gas, oil shows and fluorescence. Wireline logging with fluid sampling follows. It is an early encouraging sign, not yet a confirmed discovery; the 7-inch casing is on its way in case logs are positive.

drilling result

Xanadu-1 began drilling at 3pm on 4 September 2017, about 11 days ahead of the earlier forecast. Planned depth is about 1863 m, taking roughly 23 days, targeting 160 MMbbl unrisked. This is the first Norwest-operated exploration well in years.

drilling spud

Norwest raised A$1.046 million at 0.32c: $510,000 from the share purchase plan and $536,000 from a placement. Malaysia-based Tamarind Classic Resources took $475,000 of the placement. Shares are due to be allotted 4 August 2017.

capital raising announcement

Xanadu-1 spud scheduled for the second half of September 2017, after AWE's Waitsia wells, using Enerdrill Rig-3. This firms up the earlier 'H2 2017' timing. Lockyer Deep-1 now second half of 2018; Arrowsmith-3 late 2018/early 2019; Jingemia oil sales expected Q4 2017.

drilling scheduled

Norwest offers a share purchase plan to raise $1 million at 0.32c, a 20% discount to the five-day average price. Funds go to the EP368/EP426 well, Jingemia restart, Norwest's TP/15 share after Xanadu, and working capital. A placement at the same price is possible.

capital raising announcement

Full farm-out agreements signed for Xanadu-1, turning the February term sheets into binding deals: 3C and Triangle 30% each, Transerv 15%, Norwest free-carried for 25% as operator. Rig letter of intent issued to Enerdrill; EPA ruled no assessment needed; heritage approval signed.

farm in farm out completion

Xanadu-1 is fully funded: 3C Group takes 30% of TP/15 for 40% of well costs, completing the farmout. Norwest keeps operatorship and a free-carried 25%. 3C also buys 208m shares at 0.24c to raise A$500,000, with 60m options.

farm in farm out agreement

Term sheets signed for the Xanadu-1 well in TP/15: Transerv pays 20% of costs for a 15% interest, Triangle Energy pays 40% for 30%. This funds 60% of the well. The deal lapses unless 100% of costs are funded by 31 December 2016.

farm in farm out agreement

Sale agreement for the Jingemia oilfield (L14) lodged for government approval: Cyclone Energy (33.722%, operator) and RCMA (60%) would take over from Origin and others, aiming to restart production in first half 2017. Norwest keeps 6.278% and expects about $200,000 in start-up costs.

asset acquisition disposition

Norwest forms a strategic alliance with Transerv Energy to farm out Xanadu and its Perth Basin permits. It raises $800,000 at 0.2c, including $200,000 from Transerv for 100m shares. Directors' shares need shareholder approval. Shelley Robertson is appointed CEO, replacing Munachen.

capital raising announcement

CEO and director Peter Munachen resigned, effective 31 March 2016. He had been CEO since 2008 and was on health leave from Sept 2015. John Annand stays as Acting CEO until a permanent appointment. This resolves the open question of his return.

director officer appointment

Norwest plans to raise about $1.32m: a $500,000 placement of 200m shares at 0.25c, plus an underwritten entitlement offer of about $820,228, both via Argonaut. Funds are to bring Lockyer Deep-1, Xanadu-1 and Arrowsmith-3 towards drill-ready status. The raise price is below June's 0.4712c.

capital raising announcement

CEO Peter Munachen takes about three months' leave for personal health issues. John Annand, General Manager Corporate and Commercial, covers the CEO duties meanwhile. Board expects Munachen to return.

director officer appointment

The placement is completed, raising $500,000 at 0.4712c: 53,056,027 shares to Rey (about 3.68% post-placement) and a further 53,056,027 to Patersons' clients. Funds go to working capital. Follows the March share purchase plan at the same price.

capital raising announcement

Norwest forms a strategic alliance with Rey Resources to explore Perth Basin opportunities, including the TP/15 (Xanadu) farm-out. Rey subscribes $250,000 at 0.4712c per share, 53,056,027 shares. Builds on the farm-out search; no farm-out terms are agreed yet.

material agreement

The EP413 Arrowsmith 3D seismic acquisition (106 km2) is finished on time and within budget. Processing begins, with results expected in Q3 2015, to help choose the Arrowsmith-3 horizontal well location. Delivers the early-2015 survey flagged earlier.

drilling progress report

On-ground preparation is complete and the 106 km2 Arrowsmith 3D seismic survey is set to start within days, taking about 21 days. Processing results are expected in Q3 2015. This begins the work approved in March, ahead of the Arrowsmith-3 well.

drilling progress report

The share purchase plan closes with $1.0m raised, plus an $80,000 top-up placement, at 0.4712c per share, with about 229m new shares to be issued. Farm-out discussions continue. Completes the raising launched in February.

capital raising announcement

Federal and State approvals are granted for the 106 km2 EP413 Arrowsmith 3D seismic survey, expected to start before end Q1 2015, with results in Q3 2015. This clears the approvals hurdle and feeds the Arrowsmith-3 horizontal well design.

regulatory community update

Norwest launches a $1m share purchase plan, underwritten by Patersons, priced at a 20% discount to the 5-day average price. Funds go to Arrowsmith-3 planning, Xanadu planning and working capital. Directors will participate; Norwest says its share of the EP413 3D seismic is already funded.

capital raising announcement

Norwest and Wessex are provisionally awarded a UK Promote Licence over blocks 98/7b, 98/8a and 98/12 (north) near Wytch Farm, the area of former P1928. Norwest holds 65%. Two years to select a drillable target and find a partner, resolving the re-application.

asset acquisition disposition

Norwest receives Exploration Permit EP492 (860 km2, 100%), converted from the SPA, and buys Finder No 5, holding a further 805 km2 SPA. Cost: 2m shares, $538,000 on permit award, and a royalty to Finder. Combined footprint is 1,665 km2.

asset acquisition disposition

Norwest plans to drill the Xanadu-1 oil prospect in TP/15 (100%) from onshore via a deviated well, targeting Permian sands at about 800m, in mid-2015. It will seek a farm-in partner to fund drilling, with RFC Ambrian managing. Unrisked best estimate recoverable is 160 mmstb (inference from table).

drilling scheduled

John Annand, Commercial Manager since July 2013, becomes CFO and Company Secretary; Ernest Myers resigns after 10 years. Finance and company secretary work moves in-house from contractor RSIA as part of a restructure expected to deliver future cost benefits.

director officer appointment

Production logging shows the Carynginia and Irwin River Coal Measures are the dominant gas zones at Arrowsmith-2; the Lower IRCM, not the High Cliff Sandstone, supplies most Stage 1 gas. The Arrowsmith-3 target will be set after 3D seismic in Q4 2014. This follows the March test.

well test result

Norwest and Wessex agreed with the UK regulator to relinquish onshore PEDL 238 and 239 early, ahead of the 1 July 2014 expiry, to re-apply in the 14th Landward Round in H2 2014. Beluga, Steelhead and Razorback closures were poorly defined and farmout efforts failed.

asset acquisition disposition

Norwest and partner Wessex relinquished the UK offshore P1928 licence (Norwest 65%) before the 1 February 2014 drill-or-drop deadline, intending to reapply for the better parts. This ends the planned drilling path, after the October 2D survey. UK onshore licences PEDL 238 and 239 expire 1 July 2014.

asset acquisition disposition

Arrowsmith-2 flowback began 18 September from three co-mingled zones, with a peak constrained rate of 3.523 million scf/d. Rate fell to 0.91 million scf/d after 18 hours as stimulation fluid unloaded. Testing is expected to run two to three more months.

flow test result

The share purchase plan took up 95.46m shares at 3c, raising $2.86m (80% take-up). Norwest also placed 33.33m shares at 3c to sophisticated investors for $1.0m. Total about $3.86m, funding exploration and working capital, following the 3c offer and adding to the December cash of $4.28m.

capital raising announcement

Norwest offers eligible shareholders a share purchase plan of up to 120 million shares at 3 cents, raising up to $3.6m, with up to $15,000 each. Funds go to exploration and working capital. The price is below the 5c SPP of mid-2012; it would dilute holders who do not take part.

capital raising announcement

D&M adds a first contingent (2C) gross gas resource of 316 BCF for EP413 to the earlier 2.6 TCF prospective best estimate (450 million BOE). Contingent resources cover about 36 km2 around Arrowsmith-2. This moves part of the resource closer to development, though economic status is undetermined.

resource reserve update

DeGolyer & MacNaughton's independent review of EP413 (Arrowsmith) gives a best-estimate (P50) gross prospective recoverable resource of 450 million BOE, including 2.6 TCF of gas. Norwest holds 27.945%. These are unrisked prospective volumes; no certainty of discovery or commercial viability. This is the resource booking targeted since March.

resource reserve update

Operator Empire released an independent RPS study of EP368 and EP426, estimating 32 TCF of unrisked, undiscovered gas in place in the Irwin River Coal Measures. Empire advises caution; it is a gas-in-place figure, not recoverable. Norwest holds 20% of EP368 and 22.22% of EP426.

resource reserve update

Norwest says its review of Kockatea data shows the first successful test of the shale oil concept in Australia, with up to a 200m high-graded section. This is the company's own view, not an independent estimate. Carynginia rate rose to 355,000 scf/d after a pressure build-up.

resource reserve update

Carynginia, the primary Arrowsmith-2 shale gas target, flowed at up to about 350,000 scf/d since flowback began 15 February, despite much frac fluid still in the formation. Testing of the Carynginia, coal measures and High Cliff is expected to take up to 4 months.

flow test result

Partner Empire reports Origin has given notice purporting to terminate its farm-ins on EP368 and EP426, citing the regulator not approving timing variations. Empire will seek legal advice. This ends the expected Origin 3D funding; Norwest holds 20% of each permit.

material agreement termination

Arrowsmith-2 is declared a technical success, with all five zones producing hydrocarbons to surface. Kockatea flow back has resumed, to be followed by an extended production test and then a contingent resource estimate. This is the final weekly update of this phase. Commercial rates remain unproven.

drilling result

The final Stage Five frac on the Kockatea Shale produced both oil and gas to surface, and the well was shut in after 10 hours because site storage was insufficient. Norwest says all five zones have now flowed hydrocarbons. This is the first oil sign in the program; commerciality is not yet known.

drilling result

First measured gas rate from Arrowsmith-2's High Cliff Sandstone: peak 777 scf/d, average 446 scf/d over 40 minutes, still during clean-up. Norwest calls it 'extremely pleasing'. This answers the open question on Stage One flow, though the unit was later corrected.

flow test result

The share plan raised 62.6m shares from shareholders at 5c; the 37.4m-share shortfall was placed with Hartleys and Patersons clients. That totals the full 100m shares, about $5m at 5c (calculated from the offer terms), lifting shares on issue to roughly 974m.

capital raising announcement

Share Purchase Plan offers eligible shareholders up to $15,000 each at 5c, to raise up to $5m (100m shares), closing 13 July. Funds go to exploration and working capital. Follows the November 2011 raising at 3c.

capital raising announcement

TP/15 offshore permit renewed at 100% for five years to May 2017, with 15 km of seismic and one exploration well committed; this resolves the pending renewal. The Arrowsmith-2 frac equipment is now expected in late June, another slip from early June.

regulatory community update

The Environment Minister upheld the EPA's decision not to assess the Arrowsmith-2 frac, resolving the appeal pending since 2011. Halliburton's frac spread is in the Cooper Basin until late April 2012, then will be mobilised, so the frac can now proceed.

regulatory community update

Norwest's evaluation of its 860 km² SPA-0013 (100%) finds three prospective systems: deep shale gas, shallow shale gas and conventional leads. It will apply to convert the SPA to a five-year exploration permit, extending its footprint south in the Perth Basin. Follows the 2011 Fugro survey.

other

Norwest's UK subsidiary has been awarded five offshore English Channel licences (65% and operator; Wessex Exploration 35%), next to its onshore Wessex permits and near Wytch Farm. Six leads identified with 15-32% chance of success. Award is subject to formal acceptance. Follows the earlier licence application.

asset acquisition disposition

Origin's farm-in to EP368 and EP426 has been formally settled. Origin earns 40% of each by paying 80% of a 100 km² North Erregulla 3D survey; Norwest keeps 20% and pays 20% of costs. Completes the conditional farm-in noted earlier. Empire stays operator.

farm in farm out completion

Norwest is raising about A$4.18m at 3c a share: a A$1.275m placement of 42.5m shares plus a Patersons-underwritten 1-for-8 entitlement issue of about 97.1m shares. Directors will sub-underwrite up to A$300,000. Priced below the 4.4c raising of December 2010.

capital raising announcement

Bharat will not join the five-year renewal of offshore permit TP/15, so its 50% reverts to Norwest's subsidiary, lifting it to 100%. Bharat keeps its 27.803% of Arrowsmith. Norwest still sees potential in the Xanadu prospect (90MMbbls unrisked).

joint venture update

Arrowsmith-2 core analysis is essentially complete and indicates all five targeted zones could flow gas after stimulation. Organic content in the coal measures reached 7.68%. Stimulation awaits the equipment's return later in 2011; Norwest expects its cost share under A$500,000.

drilling result

DMP has approved fracture stimulation of Arrowsmith-2, resolving the approval question. But the frac equipment must leave for a Northern Territory contract before the full program can be done, so work is expected to resume later in 2011.

regulatory community update

Arrowsmith-2 fracture stimulation, planned for 1 September, is deferred because a third party referred it to the EPA. Final DMP approval is still needed, and the process could take three months or more. Norwest calls the well a success so far.

regulatory community update

Origin has agreed conditional farm-in terms to earn 40% of EP368 and EP426 by paying 80% of a 100 km² 3D seismic survey over North Erregulla. Norwest keeps its 20% and pays 20% of the survey cost. A full agreement is still subject to board approvals.

farm in farm out agreement

Arrowsmith-2 drilling is complete and the well suspended, about six days ahead of schedule. 100m of core was recovered at 100%, plus 30 sidewall cores and full logs. Gas responses are called encouraging, but the flow test in September is the real decider.

drilling result

Arrowsmith-2 reached total depth at 3,340m, 80m short of plan. Gas readings were encouraging in the top High Cliff Sandstone but less so below. Norwest warns that gas shows in tight shale must be treated with caution until stimulation in September.

drilling result

Arrowsmith-2 spudded on 29 May 2011 in EP413, drilling at 580m on a day-one report. Target depth is about 3,400m in roughly 37 days, with fracture stimulation and flow testing to follow in Q3. Norwest holds 27.945%.

drilling spud

Norwest signs a drilling contract with Weatherford for Rig 826 to drill Arrowsmith-2, resolving the open rig question. Spud is expected towards end of May, to about 3,400m in roughly 36 days, followed by fracture stimulation. Stakes: Norwest 27.945%, AWE 44.252%, Bharat 27.803%.

contract award

Norwest is awarded a Special Prospecting Authority over 21 onshore blocks (about 860 km², 212,522 acres) between Cervantes and Eneabba. It will fly a gravity survey over six months, then has six months to apply for a permit. Extends its shale gas footprint.

regulatory community update

Red Hill South-1 reached 1,896m. Logs show hydrocarbons at three intervals (1,650.6-1,657.5m, 1,710m and 1,767m), but saturations are considered too low to be commercial. The well is being plugged and abandoned, ending the 9 MMbbl prospect hopes.

drilling result

Red Hill South-1 spudded on 28 February 2011, two weeks later than the 14 February date set in January. Targets Dongara Sandstone at about 1,587m, 9 MMbbl recoverable; total depth about 12.5 days away. Norwest and Bharat hold 50% each.

drilling spud

Drilling contract signed with Hunt for Rig 2, and WA mines department approved Bharat's transfers: 50% of TP15 and 27.803% of EP413. This was the last condition for Bharat to fund A$3m of the ~A$5m Red Hill South well. Spud still 14 February.

farm in farm out completion

A$2m raising: placement of 28.4m shares at 4.4c for A$1.25m (36% below the 6c close), plus about 104.5m options at 0.75c (1 for 7), underwritten by directors, for about A$784k. Options exercisable at 10c to June 2012. Funds Australian and UK exploration and working capital.

capital raising announcement

Letter of intent with Hunt Energy for its rig 3 to drill Red Hill South, with spud targeted 1 February 2011, provided regulatory approvals come by 15 January. Resolves the long-running rig search. Bharat's TP/15 deal still awaits state approval and FIRB consent.

drilling scheduled

Norwest and Bharat PetroResources signed the formal farm-in for EP413 and TP/15, providing up to A$15m of exploration and drilling funding. Drilling at Arrowsmith (EP413) and Red Hill South (TP/15) is planned by end-2010 or early 2011, once a rig is found.

farm in farm out completion

The Share Purchase Plan closed with 114.4m shares taken up at 2.6c, raising A$2.975m, below the A$4.58m maximum. Bharat farm-in documents are expected to be signed in Perth in mid-September.

capital raising announcement

Letter of intent with India's Bharat PetroResources: up to A$10m to earn 50% of Norwest's 55.606% in EP413, and up to A$4.5m of Red Hill South costs to earn 50% of TP/15. Norwest also gets A$500,000 of past costs back. Subject to due diligence and state approval. Resolves the long-running farm-out search.

farm in farm out agreement

Norwest offers a Share Purchase Plan of up to 176m shares at 2.6c (up to A$4.58m), a 9.1% discount, for UK and Australian exploration and bridging funding of TP/15 and EP413. This follows the earlier 2.3c placement. Farm-out talks remain advanced but unsigned.

capital raising announcement

Evaluation of Norwest's three UK Wessex Basin permits identifies seven leads with unrisked P50 recoverable oil of 3.4-53.88m barrels. A study puts the commercial threshold for UK onshore finds at 400,000 barrels. These are leads, not drill-ready prospects.

resource reserve update

Responding to AWE's shale gas push in the Perth Basin, Norwest says its acreage has shale gas potential, with 376,211 net acres and a 55.606% stake in EP413. Recoverability and commercial viability remain unproven, as management acknowledges.

other

Norwest plans a placement of up to 56.575m shares at 2.3c to raise up to A$1.3m, managed by Patersons. Funds will pay for the Victoria Petroleum assets, Perth Basin and Wessex Basin exploration and working capital.

capital raising announcement

Norwest agrees to buy Victoria Petroleum's Northern Perth Basin interests for A$500,000, lifting Jingemia from 1.278% to 6.278% and EP413 from 50.593% to 55.606%. Management says Jingemia could give A$750,000-1m a year (company estimate). Approval is required by 31 December 2010.

asset acquisition disposition

Norwest agrees to buy Origin's 49.189% of EP413 for A$87,500, lifting its stake from 1.278% to 50.467%. This is next to the Jingemia field. It is subject to ministerial approval by 30 June 2010 and a commitment to drill a well by 1 February 2011.

asset acquisition disposition

Citing AED's report, Norwest says Puffin has 20.93m barrels of P50 reserves and production is likely to resume in 18-24 months. Norwest calculates its 1.25% royalty is worth about A$15m NPV at 10% (assumes US$80/bbl oil). Earlier restart is not expected.

production update

Early review of the TP/15 gravity survey confirms the Xanadu and Redhill South prospects as drill targets for 2010. Xanadu is put at 98m barrels of oil in place (27m recoverable); Redhill South at 27m in place (7m recoverable). Drilling is targeted for Q4 2010, subject to securing a rig, with farm-in talks continuing.

investor presentation

Mike Fry, a director since June 2009, is appointed Chairman with immediate effect. This fills the chair left open by Bill Bloking's retirement on 30 June 2009. He also chairs Red Fork Energy and sits on two other ASX boards.

director officer appointment

The rights issue closed 3 September with eligible shareholders taking only 92.9m shares. The underwriter took up the 117.8m-share shortfall, so the full A$2.63m at 1.25c is secured. This completes the raising launched on 31 July.

capital raising announcement

Norwest announced a fully underwritten 2-for-3 rights issue at 1.25c, up to 210.7m shares raising A$2,633,768, underwritten by Patersons. Funds go to exploration in Australia and the UK plus working capital. It closes 3 September 2009.

capital raising announcement

The Puffin JV terminated the charter contract with the Front Puffin FPSO owner after the breaches raised on 17 June were not fixed. The JV will now consider options for the field, leaving Norwest's royalty income uncertain.

material agreement termination

Norwest gained the right to earn 60% of the Hurst Castle permits (PEDL 089 and P1153) in southern England by part-funding a 2009 work programme estimated at GBP60,000, and will become operator. The permits lie between its Dorset and Isle of Wight licences.

farm in farm out agreement

The Puffin JV issued a breach notice over operating and performance issues with the Front Puffin FPSO, and production will be interrupted. Interruption delays any royalty income to Norwest from its 1.25% royalty.

production update

Mike Fry, a capital markets and treasury specialist, joined the Norwest board on 8 June 2009. Chairman Bill Bloking will retire from the board on 30 June 2009 because of other business interests.

director officer appointment

Puffin-13 found live oil in both main reservoir sands at depths consistent with Puffin-9, showing the oil-bearing structure is continuous. The rig is being demobilised. The JV will evaluate combined pools and development options, which matters for Norwest's 1.25% royalty.

drilling result

Norwest completed the sale of its UK North Sea subsidiary to Silverstone for A$2.425m, receiving a net A$2,225,234. With other funds this repaid the A$2.4m Investec debt in full. Retained: Puffin royalty, Jingemia, TP/15 100%, 20% of EP368 and EP426, and the Wessex Basin onshore interests.

asset acquisition disposition

Great Auk-1 finished at 3522 m. The hydrocarbon found was a wet gas with high condensate, the first gas discovery on the Puffin permit, but AED says volumes are unlikely to be commercial at this stage. The rig moved to the Puffin-13 appraisal well.

drilling result

AED reports Great Auk-1, drilled by the Puffin JV, found a 6-7 m hydrocarbon column in the first target sand at 2200 m. Drilling continues to deeper targets, and a second well may be an appraisal updip of Puffin-9. Norwest holds a 1.25% royalty over the permit.

drilling result

Norwest dropped the Fairfield deal (US$1.6m) and accepted Silverstone Energy's higher offer of A$2.425m for its North Sea assets, after UK tax changes on 22 April which Norwest says raised their value. Settlement is targeted by 15 May, subject to approvals; proceeds go to the A$2.4m Investec repayment.

asset acquisition disposition

Share purchase plan offers existing shareholders up to A$5,000 each at 1.25c per share, raising up to A$911,689 from 72.9m shares. Closes 1 May 2009. The price is about 17% below the last close of 1.5c.

capital raising announcement

Norwest agreed to sell all its UK North Sea interests, including 25% of Cobra and the Inner Moray Firth licences, to Fairfield Energy for US$1.6m. Proceeds repay the bank facility due end of May. Strategy shifts to onshore Southern England and North Perth Basin; approvals pending.

asset acquisition disposition

Norwest placed 25 million shares at 0.8c to sophisticated investors, raising A$200,000 for working capital. This is far below the failed 2.25c rights issue price and the amount needed for Investec.

capital raising announcement

The rights issue failed: the directors said it was not well supported given market conditions. No shares will be allotted and applications will be refunded in full. The Investec obligation remains unfunded and other ways to raise money are being reviewed.

capital raising announcement

Norwest signed a heads of agreement with Empire Oil & Gas to swap equity so it holds 20% of both EP368 and EP426. ARC and Origin intend to assign their EP368 interests to Norwest, and the deal needs WA regulator consent. EP368 permit expired 10 Feb; renewal sought.

farm in farm out agreement

Norwest announces a one-for-one non-renounceable rights issue at 2.25c per share to raise up to A$4.91m (up to 218.1m shares). Proceeds go to repaying the A$2.4m Investec loan, exploration in Australia and the UK, and working capital.

capital raising announcement

Puffin-12 ST3 hit oil-bearing LK1A sand at about 2033 m, but the oil column is too thin to complete, with oil price and economics also considered. The NE well will be suspended. Remediation of Puffin-7 and possibly Puffin-8 is likely in Q2 2009. Negative for the royalty.

drilling result

CEO Roger O'Brien, who started on 1 July 2008, is stepping down for family reasons after about five months. Finance Director Peter Munachen becomes CEO immediately. This is the second CEO change in a year, after Salomon left in December 2007.

director officer appointment

Norwest will be awarded UK block 48/1c next to Cobra, with a 25% interest alongside EnCore (operator), Tata Petrodyne and BPCL. Management says it may add over 100 BCF to Cobra. This extends the Cobra gas discovery, which still lacks proven commercial flow rates.

asset acquisition disposition

Puffin-11 flow-tested up to 3,600 bopd, limited by flaring capacity, with a calculated well productivity above 10,000 bopd. It is confirmed as a new discovery adding to the Puffin south-west reservoirs. The well is suspended and the rig moves to Puffin-12. Positive for Norwest's 1.25% royalty.

flow test result

An independent review puts Cobra's most likely gas in place above 300 BCF. Half or more may be recoverable, subject to successful flow testing. This follows the April-May well that did not flow commercially; the joint venture is weighing options to reach commercial rates.

resource reserve update

Puffin-11 hit an oil-bearing sand at 2013 m with a movable oil column over 20 m, reported by AED. Rock quality is still being assessed. Norwest's 1.25% royalty applies, so this is a positive first sign for the Puffin royalty after the Wisteria dry hole.

drilling result

Wisteria-1 reached 3,281 m and found no significant hydrocarbon shows in the Plover, the last target. The joint venture will log, plug and abandon it. A dry hole for Norwest's 15%, about 6% of cost.

drilling result

Wisteria-1 passed through the main Puffin Formation target (the 174 mmbbl P50 case) without reservoir-quality sandstone or significant hydrocarbon shows. At 2,019 m, it continues to the deeper Montara and Plover targets (21-32 mmbbl P50).

drilling result

The West Atlas rig is on location to spud Wisteria-1 on 22 August, in 97 m of water to about 3,323 m. Targets total over 200 million barrels potential (Puffin P50 174 mmbbl). Norwest's 15% costs about 6% of dry-hole cost.

drilling spud

Norwest sells its 10% of the R3 retention lease (Cyrano oil field) to Oil Basins for A$26,667 plus 333,333 OBL shares. It did not fund the Cyrano wells and would rank behind partners in recovering costs; field is small (about 0.92 million barrels recoverable).

asset acquisition disposition

Dr Roger O'Brien, 59, a New Zealand-based former Shell and NZ Oil & Gas manager, becomes CEO from 1 July 2008 on A$375,000 a year plus five million options. This fills the vacancy left by Joe Salomon's January resignation.

director officer appointment

Norwest will raise about A$4.6m: a placement of 13 million shares at 13 cents (A$1.69m) via Kirke Securities, plus a A$3m Investec secured facility to 30 June 2009, charged over assets including the Puffin royalty. Investec also gets options. Its first debt since earlier no-debt position.

capital raising announcement

Origin reports Freshwater Point 1 plugged and abandoned on 29 May. Logs and the lack of shows indicate no hydrocarbons in the target sandstones. A dry hole for Norwest's 1.278% interest.

drilling result

Norwest and partner Osceola Hydrocarbons are offered two UK onshore licences in the 13th Round: PEDL 238 (Dorset, near BP's Wytch Farm field; Norwest operator, 50%) and PEDL 239 (Isle of Wight; Norwest operator, 75%). Awards await formal BERR confirmation.

asset acquisition disposition

Cobra 48/2c-5 flowed at most 1.1 million cubic feet of gas a day un-stimulated, which is not commercial. The well is suspended pending a stimulation study. A gas column of at least 350 ft supports a large gas volume. Falls short of the 2.7 mmcfd 1984 well.

well test result

Drilling has started on the Cobra appraisal well (48/2c-5) in the Southern North Sea. Norwest, 22.5%, pays 6.5% of the cost up to a cap. It aims to show the reservoir can flow at commercial rates, beyond the 2.7 mmcfd of the 1984 well.

drilling spud

Ithaca's Manuel well (Norwest 5%) found oil-saturated Jurassic sands of less than reservoir quality, with no oil sample recovered; it is being plugged and abandoned. A disappointing result for Norwest's new North Sea farm-in.

drilling result

Norwest farms into Ithaca's Block 11/29 (Manuel prospect, Inner Moray Firth), paying 7.5% of the well cost to earn 5%. The well spudded 17 February 2008; estimated dry-hole cost is US$17m.

farm in farm out agreement

Cosmo Energy farms into AC/P32 for 22.5% on a 2-for-1 promoted basis. Norwest drops from 24.08% to 15.0%, with exposure to the Wisteria-1 dry-hole cost of under 6%. Drilling expected Q3 2008. Resolves the search for a farm-in partner.

farm in farm out agreement

CEO Joe Salomon resigned 'to pursue other interests'. The board will search for a successor. Follows his resignation as a director on 19 December.

director officer appointment

Norwest received its first Puffin royalty payment, A$443,913 from AED, on its 1.25% override. This is the first cash from the field after first oil on 6 October 2007.

production update

ENSCO 80 rig contracted for the Cobra appraisal well (Block 48/2c), to drill Q1 2008. Norwest farms out 2.5% to Challenger Minerals, keeping 22.5%; its estimated exposure to total well cost is about US$3m. Resolves the rig-slot thread.

farm in farm out agreement

AED suspended Puffin-10 in Puffin South West after more complex geology than expected and two extra sidetracks. Sands were thin (max 2.5m) but mostly oil-bearing. Further drilling, possibly re-entering Puffin-9, depends on vessels in H2 2008. SW production, earlier hoped for H1 2008, looks delayed.

drilling result

AED reported Puffin North East first oil on 6 October, with Puffin-8 flowing up to about 12,000 stb/d and Puffin-7 reaching about 16,000 stb/d. This started the production behind Norwest's 1.25% royalty, about two months later than the August 2007 expectation.

production update

Using AED's new Puffin South West estimate of 40.3m barrels recoverable, Norwest lifts total recoverable to 89.3m barrels. Its 1.25% royalty is valued at A$66-92m at US$50-70 oil and 0.85 FX, up from A$65m. AED expects Puffin NE1 production in August 2007.

resource reserve update

Norwest sold its 50% of the Tennessee Rich Mountain lease for US$60,500, completing its exit from the Appalachian shale gas project and ending the US disposal thread.

asset acquisition disposition

Norwest closed the sale of its 70% share of the Little Sandy (Kentucky) shale gas project for about US$370,000, ending its Kentucky involvement. Resolves the long-running sale effort. Only the Tennessee Rich Mountain lease remains.

asset acquisition disposition

Bill Bloking, a director since March 2007 and former BHP Billiton Petroleum gas president, becomes chairman. Founding director Dave Kennedy steps down as chair but stays on as a non-executive director.

director officer appointment

Puffin-8 flowed at up to 11,660 barrels a day, limited by test equipment. AED calculates it can sustain 15,000-20,000. Similar to Puffin-7, and gives second-well security of production. Norwest holds a 1.25% royalty.

flow test result

AED reports Puffin-8 struck oil, with more than 73m of oil-bearing interval drilled in a near-horizontal section so far. Norwest holds a 1.25% royalty over the field, so this adds to the expected royalty income. Drilling continues.

drilling result

Wireline logs confirm Jingemia-11 found 31m of Dongara Sandstone: a 23m oil column over about 8m of partially swept oil. Top is 14m updip of the best producer. Casing is being run to complete it. Target output is ~5,000 bopd, from ~3,000 now.

drilling result

Indian companies BPCL and Tata Petrodyne each fund 40% of an appraisal well, capped at US$23m, on UK Block 48/1b&2c to earn 25% each. Norwest drops from 50% to 25%. Well due before December 2008. Concludes the BPCL talks and farmout on this block.

farm in farm out agreement

Operator Origin reports good oil shows in the target Dongara Sandstone at Jingemia-11 (2,489-2,520m), drilling at 2,528m. Victoria says the well looks successful and could lift field output from 3,200 to about 5,000 bopd. Norwest holds 1.278%.

drilling result

AED estimated Puffin South West oil in place at 38-97m barrels (most likely 65m). Norwest adds this to NE1 and NE2 and raises its 1.25% royalty value estimate to A$65m from A$41m, assuming US$50 oil and 44% recovery. SW accuracy needs more drilling.

resource reserve update

Former BHP Billiton Petroleum gas president Bill Bloking joins as non-executive director. He is to get 3m options (exercise $0.225-$0.325), subject to shareholder approval. Chairman expects significant Puffin royalty cash flows from late 2007.

director officer appointment

After AED added a Puffin NE2 area (11-30m barrels in place), Norwest raised its estimate of its 1.25% royalty value to A$41m from A$33m, using US$50 oil and a 44% recovery assumption. Later corrected (see 20 Feb).

resource reserve update

BPCL farms into AC/P32, paying the joint venture US$1.42m (Norwest share US$427,420) for a 20% interest. Norwest's interest becomes 24.08%. BPCL gets first right to further interests. First formal deal from the BPCL talks; next-year entry from May 2007 remains optional.

farm in farm out agreement

Norwest's UK subsidiary won a new North Sea licence, Block 47/7, in the Southern Gas Basin, held 50% with Encore Oil. Initial two-year term requires data reprocessing, then a drill-or-drop decision. Expands the UK push alongside its existing 50% block nearby.

asset acquisition disposition

After AED's reserve upgrade for Puffin North East (P90 22, P50 40, P10 67 million barrels), Norwest estimates its 1.25% royalty could be worth A$33m. That uses the P50 case and US$50 oil, up from the earlier $10-40m range.

resource reserve update

Norwest closed the West Virginia sale to Ascent for about US$1.5m, exiting the project. The price covers leases at a premium and sunk well costs. Kentucky and Tennessee are now under review for sale.

asset acquisition disposition

Norwest signed an areas-of-mutual-interest agreement with India's Bharat Petroleum (BPCL) to pursue international upstream opportunities, with Norwest as project leader. It builds on the India office; no specific project or funding is stated yet.

material agreement

Norwest signed to sell its 29% of the West Virginia shale gas project to operator Ascent, exiting the state, with closing due early November. The price is a significant premium to lease cost and recovers well costs. Kentucky and Tennessee are being assessed after outside interest.

asset acquisition disposition

Operator AED says oil in place at Puffin North East has risen from 13 to over 90 million barrels, with a reserves upgrade expected (current P90 10.4 million barrels). First oil is expected early 2007. Norwest's 1.25% royalty benefits.

resource reserve update

Moondah-1 in TP/15 reached 1,450m without significant hydrocarbons and will be plugged and abandoned. A dry hole for the well flagged as a significant test; Norwest was earning 10%.

drilling result

The rig is in position to drill Moondah-1 in TP/15, offshore Perth Basin, planned to 1,330m. Norwest is earning 10% and the CEO calls it a significant test. This is the TP/15 well flagged earlier.

drilling spud

The Tussey-1 well in Kentucky open flowed 120,000-190,000 cubic feet a day from the Berea, a new gas pool, though water slugging hampers rates. In West Virginia, two wells flowed up to 130,000 cfd from a secondary shale zone; more fracs are planned.

flow test result

Puffin-7 tested at stabilised rates up to 9,700 barrels of oil a day, limited by test equipment. Initial capacity is calculated at over 15,000 bopd of light sweet crude. This supports Norwest's 1.25% royalty on the Puffin development.

well test result

Operator AED reports Puffin-7 found excellent-quality oil sandstone at 2,514m, and the Puffin field production licence AC/L6 has been awarded. Flow testing is expected in about two weeks. Norwest holds a 1.25% overriding royalty.

drilling progress report

AED submitted a Notice of Discovery for Puffin-9: 6.0m of oil in the UK1a sandstone and 3.8m in the LK1a. Puffin-7 development drilling has begun. Norwest's 1.25% royalty gains support, though AED's reserves evaluation is still underway.

drilling result

Norwest confirms Magnolia-1 was a dry hole at 3,109m, with no hydrocarbon shows in any target. The CEO calls it disappointing but says Norwest's financial exposure was almost zero and the strategy is intact. Next: Perth Basin TP/15 in April, Kentucky and West Virginia drilling.

drilling result

Partner Adelphi reports Magnolia-1 reached 3,109m with no hydrocarbon shows in the Plover, so the joint venture will plug and abandon. Adelphi calls the result disappointing; it says too early to assess AC/P32's remaining prospectivity.

drilling result