3 Sept 2012drilling result▲ Good
Partner AWE confirms the Kockatea Shale frac at Arrowsmith-2 recovered both oil and gas, with testing paused while separation equipment is brought in. Repeats Norwest's 3 September result.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 Aug 2012drilling progress report▲ Good
AWE update on its Perth Basin program: Senecio-2 gas flows have risen to about 1 million cubic feet a day. Arrowsmith-2 Carynginia is still flowing back and the Kockatea frac is being prepared. Mostly about partner wells.
30 Aug 2012drilling progress report▲ Good
Carynginia clean-up continues with steady gas and fluid returning, while Stage Five on the Kockatea Shale (2,639-2,681m) is prepared. Norwest says the primary objectives are met on the first four stages. Operations are expected to continue 1-2 more weeks.
23 Aug 2012drilling progress report● Neutral
Stage Two on the Irwin River Coal Measures got gas to surface but no gas rate could be established after seven days; the zone needs much longer flow back. Stages Three and Four (Carynginia) are being fracced. A more cautious note than the prior week.
16 Aug 2012drilling progress report▲ Good
Stage Two frac on the Irwin River Coal Measures is complete, with gas to surface earlier than expected and clean-up under way. No established rate yet. Stages Three and Four (Carynginia) are being prepared. Operations are expected to take another 4-5 weeks.
2 Aug 2012drilling progress report● Neutral
Arrowsmith-2 is still unloading water and gas after the Stage One frac, with no established gas rate yet. Site preparation for Stage Two (Irwin River Coal Measures, 2,949m) is under way. Operations are expected to run another 6-7 weeks.
30 July 2012drilling progress report▲ Good
Stage One frac on the High Cliff Sandstone was completed without incident on 29 July, and flow back has begun. The frac crew moves to the AWE well before returning for Stage Two on the Irwin River Coal Measures. This is the first frac of the Arrowsmith-2 campaign.
24 July 2012drilling scheduled● Neutral
Frac equipment delivery is expected by 27 July, with the first stage on the High Cliff Sandstone (about 3,300m) taking one to two days, then flow back. Weekly Thursday updates will follow, the first on 2 August.
17 July 2012drilling progress report▲ Good
Frac equipment has begun leaving South Australia, slowed by rain, with operations expected by end of July. Pre-frac integrity (cement bond) and injection tests on Arrowsmith-2 were described as encouraging.
2 July 2012drilling progress report● Neutral
The Arrowsmith-2 frac is now set for the second half of July as the equipment is serviced in Moomba. Razorback seismic interpretation shows a structurally robust prospect (43 MMbbl P50); UK regulators allowed the drill-or-drop decision to be deferred two years.
14 Mar 2012drilling result▲ Good
The 54km Razorback seismic survey on the Isle of Wight is finished in 13 recording days, within budget, with excellent data quality. Processing is due in about three weeks, then remapping of the 43 MMbbl (P50 oil in place) prospect.
28 Feb 2012drilling progress report● Neutral
A 50km 2D seismic survey has started over the Razorback prospect on PEDL 239, Isle of Wight (Norwest 75%, Wessex Exploration 25%). Razorback is estimated at 43 MMbbl oil in place (P50). Survey takes about two weeks; this is the planned Q1 2012 programme.
6 Dec 2011farm in farm out completion● Neutral
ERM Power, an EP426 partner, confirms Origin's farm-in settled on 5 Dec, leaving ERM with 13.89% after Origin earns 40%. Repeats the Empire and Norwest announcements.
5 Dec 2011farm in farm out completion▲ GoodMajor
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.
5 Dec 2011farm in farm out completion▲ Good
Norwest's own notice of the Origin farm-in settlement: it keeps 20% and pays 20% of the 100 km² 3D. Empire's revised mapping gives North Erregulla 22MMbbls (Wagina), 3MMbbls (Arranoo) and 100BCF gas, lower than earlier oil figures. Hoyer analysis suggests shale gas potential.
27 Sept 2011drilling result▲ GoodMajor
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.
22 Aug 2011farm in farm out agreement▲ Good
Norwest confirms it will keep its 20% of EP368 and EP426 rather than farm out to Origin, and will pay 20% of the 3D seismic survey proposed for Q1 2012. Origin earns 40% by funding 80%. Mapped North Erregulla up-dip potential is 60MMbbls of oil and 300BSCF of gas.
18 Aug 2011farm in farm out agreement▲ GoodMajor
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.
23 June 2011drilling result▲ GoodMajor
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.
23 June 2011drilling result▲ Good
Partner AWE confirms Arrowsmith-2 is complete and suspended at 3,340m. It reports 460m of Kockatea, 250m of Carynginia, 330m of Irwin River Coal Measures and 22m of High Cliff Sandstone, with elevated gas readings. Fracture stimulation is planned for Q3.
17 June 2011drilling result▲ GoodMajor
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.
16 June 2011drilling progress report▲ Good
Arrowsmith-2 is at 3,102m, with two cores cut: 55m of Carynginia and 45m of Irwin River Coal Measures. Core results are expected late August, with fracture stimulation planned for September.
16 June 2011drilling progress report● Neutral
Partner AWE's report repeats Arrowsmith-2 at 3,102m with the 55m and 45m cores cut, and 811m drilled in the week. No new information.
9 June 2011drilling progress report● Neutral
Arrowsmith-2 is drilling at 2,291m after setting 9-5/8 inch casing at 2,284m, just into the top Kockatea. Next is drilling to 2,750m and coring the middle Carynginia Shale. No results yet.
9 June 2011drilling progress report● Neutral
Partner AWE's report repeats Arrowsmith-2 at 2,291m after casing at 2,284m, with 1,691m drilled in the week. No new information.
2 June 2011drilling progress report● Neutral
Partner AWE's report repeats the Arrowsmith-2 update: 13-3/8 inch casing cemented at 600m, about to drill ahead. No new information beyond Norwest's own report.
2 June 2011drilling progress report● Neutral
Arrowsmith-2 has run and cemented 13-3/8 inch casing at 600m and is drilling out the shoe to continue in the 12-1/4 inch section. No results yet; target depth still about 3,400m.
30 May 2011drilling spud▲ GoodMajor
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%.
23 May 2011drilling scheduled● Neutral
Weatherford Rig 826 is being moved to Arrowsmith-2, with spud expected on 28 May 2011. The well is to reach about 3,400m in roughly 37 days, then be fracture stimulated and flow tested. Weekly reports each Thursday.
22 Mar 2011drilling scheduled● Neutral
After the Red Hill South dry hole, Norwest calls it a technical success and turns to shale gas. Arrowsmith-2 is now planned for mid May, with the Weatherford rig 826 still being negotiated, after the earlier April target.