31 July 2006drilling result▼ BadMajor
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%.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 July 2006quarterly activities report● Neutral
June quarter report: Jingemia averaged about 2,030 bopd and Puffin-7 flowed 9,700 bopd on test, with Phase I development planned for December to first quarter 2007. AC/P32 operatorship passed to Coogee, a three-month extension was granted, and Moondah-1 spudded on 24 July.
24 July 2006drilling spud● NeutralMajor
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.
21 June 2006other● Neutral
Office closed on 22 June 2006 for the funeral of Stephanie Hodge, a Norwest team member. No business substance.
8 June 2006flow test result▲ GoodMajor
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.
18 May 2006well test result▲ GoodMajor
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.
12 May 2006drilling progress report▲ Good
AED has completed Puffin-7 and will flow test it, expecting over 15,000 barrels a day capacity. AED has hedged 1.2 million barrels for 2007-08 at about US$72. Norwest's 1.25% royalty is separate from a new 1.25% royalty granted to CEI.
9 May 2006drilling result▲ Good
AED drilled a 675m horizontal section in Puffin-7, 635m of it net oil sand. Reserves are said to equal or exceed the earlier P90 estimate of 7.6 million barrels, with scope to increase. An updated reserves statement is due within up to six months.
5 May 2006drilling progress report▲ GoodMajor
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.
5 May 2006drilling result● Neutral
All five Cornstalk wells in West Virginia are drilled, each intersecting the target Devonian and Rhinestreet shales. Flow rates are unknown until frac and completion. Ascent carries Norwest's costs on the first three wells; Norwest pays its 29% on the last two.
28 Apr 2006quarterly activities report▲ Good
March quarter report: Jingemia hit a record 5,205 bopd in February, three Kentucky wells drilled, four of five West Virginia wells drilled. AC/P32 interest rose to 30.1% after OPIC and AWE withdrew; a six-month permit suspension is sought. Puffin-9 confirmed as an oil discovery.
4 Apr 2006drilling result▲ GoodMajor
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.
24 Mar 2006investor presentation● Neutral
March 2006 presentation repeating known facts: Puffin-9 shows, TP/15 drilling in May, US shale drilling and UK gas blocks. It says AC/P32 needs a partner to fund the next phase after Magnolia-1. No new announcements.
22 Mar 2006drilling progress report▲ Good
Operator AED reports Puffin-9 at 2,225m, with hydrocarbons in the first two of four targets, to be confirmed by wireline testing. Norwest has a 1.25% overriding royalty in AC/P22.
17 Mar 2006admin correction▼ Bad
Norwest corrects its 13 March Puffin release: Puffin-8 will be drilled after Phase 1 production starts, not soon after Puffin-7. Cash flow to Norwest from the 1.25% royalty is now expected before the end of fiscal 2007 rather than this year.
16 Mar 2006half year report▼ Bad
Half-year accounts to 31 December 2005: loss of $1,545,519, versus $86,964 a year earlier. Revenue was $529,088. The directors state there are reasonable grounds to believe the company can pay its debts.
13 Mar 2006drilling spud▲ Good
The Puffin-9 exploration well in AC/P22 spudded, operated by AED, which holds 100% of the block. Norwest holds a 1.25% overriding royalty with no cost obligations; Puffin-7 was to be drilled next, with Puffin-8 later.
13 Mar 2006drilling result● Neutral
Partner Alto Energy repeats Norwest's report of the first Cornstalk well: 1,101m total depth, four cores bubbling gas. No new information.
10 Mar 2006drilling result▲ Good
The first Cornstalk well in West Virginia reached 1,101m and was cased, with four cores bubbling gas. It is the first in an approved five-well program; Norwest has 29%, and Ascent pays Norwest's costs on the first three wells.
9 Mar 2006other● Neutral
Shareholder newsletter, mostly restating known facts: cash of $8.9 million at 31 December 2005, Jingemia expected to bring over $1 million income in the next year, and Puffin royalty income expected from late 2006. Sets out 2006 plans across Australia, UK, US and India.
22 Feb 2006drilling spud▲ Good
The first well of the Cornstalk project in West Virginia has spudded, planned to 1,158m targeting Devonian shale gas. Norwest holds 29% via a subsidiary; operator Ascent pays Norwest's and Alto's share of the first three wells.
3 Feb 2006drilling result▲ Good
The third Kentucky well reached about 688m with 148m of Devonian Shale and indications of free gas. The first two wells were fraced and flowed gas at modest, unstabilised rates. West Virginia drilling of the first three of up to seven wells is due this month.
3 Feb 2006drilling result● Neutral
Partner Alto Energy repeats Norwest's 3 February Little Sandy update: third well drilled with 148m of Devonian Shale, first two wells fraced. No new information for Norwest holders.
30 Jan 2006quarterly activities report● Neutral
December 2005 quarter: Magnolia-1 drilled to 3,109m and was plugged and abandoned without shows. Norwest completed a $4 million placement and raised $1.18 million via a share purchase plan. Jingemia net output was 4,843 barrels; Puffin royalty drilling due February 2006.
13 Jan 2006drilling result▲ Good
The second of three Kentucky shale gas wells at Little Sandy (Norwest 60%, operator) reached about 659m and intersected 144m of Devonian Shale. It is cased and awaiting fracing; logs are being evaluated and the rig has moved to the third well.
11 Jan 2006drilling result▼ BadMajor
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.
11 Jan 2006drilling result▼ Bad
Partner Bounty confirms Magnolia-1 reached 3,109m with no hydrocarbon shows and will be abandoned. Bounty calls it disappointing and says it was virtually free carried.
11 Jan 2006drilling result▼ Bad
Partner AWE confirms Magnolia-1 reached 3,109m on 10 January with all targets intersected without hydrocarbon shows; the well will be plugged and abandoned.
11 Jan 2006drilling result▼ BadMajor
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.
9 Jan 2006drilling progress report▼ Bad
Partner Bounty repeats the 2,987m Magnolia-1 update: no hydrocarbon shows in the Montara and Upper Vulcan targets, drilling on to the Plover. Duplicates Norwest's report.