Past year: ▲ 60%(3.50c – 6.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
29 July 2014quarterly activities report● Neutral
June quarter: Arrowsmith-3 horizontal well still expected in CY2015, with 3D seismic approvals on track for late Q4 2014. SPA Native Title deed signed, with permit conversion expected Q3 2014. TP/15 farm-in talks continue; UK application lodged and PEDL 238/239 to be re-bid.
30 June 2014director officer appointment● NeutralMajor
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.
1 May 2014other● Neutral
Notice that an Edison research report on Norwest is on its website. No substance beyond a link.
30 Apr 2014quarterly activities report● Neutral
March quarter: the Irwin River Coal Measures and Carynginia are high-graded, with horizontal Arrowsmith-3 anticipated in H1 2015 and 3D seismic in Q4 2014. North Erregulla 3D slips to Q1 2015. Native Title agreement reached in principle; funding options for Arrowsmith-3 are still being assessed.
11 Apr 2014well test result▲ GoodMajor
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.
11 Apr 2014admin correction● Neutral
Evaluation of the Arrowsmith-2 well test and production logging showed the Carynginia Formation and Irwin River Coal Measures were the dominant gas-producing zones. Stage 1 gas came mainly from the Lower IRCM rather than the High Cliff Sandstone, and the Arrowsmith-3 target will be set after 3D seismic in Q4 2014.
4 Apr 2014asset acquisition disposition▼ BadMajor
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.
13 Mar 2014half year report● Neutral
Half-year to 31 December 2013: loss of $1.70m, versus $1.75m a year earlier. The 128.8m-share plan at 3c raised $3.86m. It restates the Arrowsmith-2 test, the P1928 relinquishment and the expected Native Title agreement. Directors state the company can pay its debts.
10 Mar 2014investor presentation● Neutral
Conference presentation by the CEO restating the Arrowsmith strategy, about 2,295 km2 net Perth Basin acreage, 2.6 Tcf prospective and 316 Bcf contingent gas, and the search for a TP/15 funding partner. Largely repeats known facts.
5 Mar 2014well test result▲ Good
The 14-day Arrowsmith-2 well test and production logging finished. Gas was identified at all tested zones, but flow rates per zone are still being analysed, which should take several weeks. This resolves the January workover and feeds the choice of Arrowsmith-3 target.
7 Feb 2014drilling progress report▲ Good
Arrowsmith-2 was re-entered on 29 January 2014. The tubing and faulty gas lift mandrel were removed, and tubing re-run to the packer at 2,645m. A 14-day well test with production logging is being prepared, feeding Arrowsmith-3 planning, which will use 3D seismic in H2 2014.
6 Feb 2014resource reserve update▲ Good
Partner AWE's independent estimate puts gross unconventional prospective gas in EP413 at 2,707 Bcf (plus 31 million bbls NGLs), within 11.1 TCF across four AWE permits. AWE says further Arrowsmith-2 testing is planned in Q1 2014. Norwest is not the issuer.
6 Feb 2014resource reserve update▲ Good
Norwest says AWE's independent estimate of 2,707 Bcf gross prospective gas at EP413 compares favourably with the 2,636 Bcf best estimate from DeGolyer and MacNaughton (June 2013). Norwest's 27.945% share is 756 Bcf and 9 million bbls NGLs. No new Norwest estimate.
31 Jan 2014quarterly activities report● Neutral
December quarter: the Arrowsmith-2 workover and final flowback phase started in the last week of January. The 3D seismic is now expected in the second half of 2014, and a formal Native Title agreement for the SPA is expected in Q1 2014. A TP/15 farm-in package is ready, and P1928 was relinquished early.
21 Jan 2014security holder rights change● Neutral
3,500,000 unlisted employee incentive options with a 5.3c exercise price, issued in 2009, expired on 21 January 2014. This is routine housekeeping with no cash or share impact.
9 Jan 2014asset acquisition disposition▼ BadMajor
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.
23 Dec 2013drilling scheduled● Neutral
Norwest sets January 2014 to remove the faulty gas lift mandrel from Arrowsmith-2, followed by a 14-day well test with production logging. It has applied to the state regulator for the 110 km2 3D seismic, now planned for Q3 2014. The horizontal Arrowsmith-3 is to follow, with no date given.
28 Nov 2013other● Neutral
AGM chairman's address acknowledges shareholder frustration over Arrowsmith-2 delays. Arrowsmith-2 is shut in pending removal of a faulty gas mandrel, and a horizontal pilot well, Arrowsmith-3, is planned afterwards. RFC Ambrian is appointed to help find funding partners.
27 Nov 2013other● Neutral
Norwest notifies that an Edison Investment Research report is on its website. The announcement carries no substance beyond a link notice.
26 Nov 2013investor presentation● Neutral
AGM presentation restates the Arrowsmith strategy, the 2.6 TCF prospective and 316 Bcf contingent resources, and the search for funding partners. Net Perth Basin acreage is shown as about 2,295 km2, down from the 2,543 km2 in earlier material. Largely repeats known facts.
31 Oct 2013quarterly activities report● Neutral
September quarter: Arrowsmith-2 averaged 312,299 scf/d over 38 days after the 3.5 million scf/d peak, then was shut in on 25 October to fix a downhole problem. The 110 km2 3D seismic slips to mid-2014 on approvals. The 2D survey in the UK P1928 licence was completed, and $3.86m was raised.
25 Oct 2013annual report● Neutral
Annual report for the year to 30 June 2013. It describes Arrowsmith-2 as a gas and oil discovery confirmed by independent resource estimates, with flowback continuing. It also notes a 3D seismic program and a UK 2D survey, and the Chairman cites regulatory and service delays.
18 Oct 2013flow test result● Neutral
Arrowsmith-2 has averaged about 315,000 scf/d since flowback began on 18 September, far below the 3.5 million scf/d initial peak. 7,320 bbls of fluid have been recovered, with about 9,055 bbls of stimulation fluid still in the well. The well will later be shut in to rebuild pressure.
20 Sept 2013flow test result▲ Good
Partner AWE (44.25%) relays Norwest's initial 3.5 million scf/d Arrowsmith-2 flowback rate and calls the smaller-tubing recompletion a success. It expects testing to continue for the rest of 2013. No new data beyond Norwest's release.
20 Sept 2013flow test result▲ GoodMajor
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.
16 Sept 2013drilling progress report● Neutral
Arrowsmith-2 completion work restarted after the 10 September packer setback, with the well completed at 2,645m. Testing of the High Cliff Sandstone is delayed until the other zones clean up; the company says the program and budget are unchanged.
10 Sept 2013drilling progress report▼ Bad
At Arrowsmith-2 the completion packer could not be run below 2,646m and was set at that depth, so the plan will be modified. This is a setback to the three-week High Cliff test schedule. Norwest will announce a revised program and restart date.
30 Aug 2013capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
95.5m new shares at A$0.030 to raise about A$2.9m. That's 8.9% dilution: every existing holder's slice gets 8.9% smaller. If you held A$1,000 of shares (33,333 at the issue price), your slice goes from 0.00342% to 0.00312% of the company. To keep it you'd need 3,266 more shares - about A$98 at the issue price.
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22 Aug 2013drilling progress report● Neutral
Arrowsmith-2 operations restarted 22 August 2013 to install a completion packer isolating High Cliff, then flow High Cliff for 2-3 weeks, followed by Irwin River Coal Measures and Carynginia. The whole program is expected to take 3-4 months.
5 Aug 2013capital raising announcement● NeutralMajor
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.
What it means for a shareholder
120m new shares at A$0.030 to raise about A$3.6m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held A$1,000 of shares (33,333 at the issue price), your slice goes from 0.00342% to 0.00305% of the company. To keep it you'd need 4,105 more shares - about A$123 at the issue price.
Create a free account to see this worked out for your own holding.
