With two recent gas discoveries in the Perth Basin, Norwest Energy (ASX:NWE) and its operating partner Energy Resources have, to the surprise of no one at all, chosen to drill the Lockyer Deep gas prospect in the first half of 2020.
Lockyer Deep is 15km east of Mitsui E&P and Beach Energy’s (ASX:BPT) producing Waitsia field and directly on trend with Strike Energy’s (ASX:STX) West Erregulla-2 gas discovery.
It has been significantly de-risked by both West Erregulla-2 and Beach’s more recent Beharra Springs Deep discovery.
Lockyer Deep targets the same conventional Kingia/High Cliff targets that produce gas at Waitsia, while the Kingia produced a very neat 69 million cubic feet of gas per day during testing at West Erregulla-2.
At Lockyer Deep, the Kingia/High Cliff targets could hold up to 1.12 trillion cubic feet of gas.
Additional potential may exist within the Wagina Formation as encountered at West Erregulla-2.
Norwest has a 20 per cent interest in Lockyer Deep while Energy Resources, the energy arm of Mineral Resources (ASX:MIN), holds the remaining 80 per cent.
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In other ASX energy news today:
Whitebark Energy (ASX:WBE) watchers will be keeping a close eye on the company after it said that it had successfully fracture stimulated its Rex-3 well at the Wizard Lake project. Flow back of the well in Alberta, Canada, is expected to start within two days.
In Mongolia, Elixir Energy (ASX:EXR) has drilled its Ugtaal-1 core hole and is now preparing to run wireline logs and carry out permeability testing of the target coals. Coal cores are also been tested in the well site laboratory to determine gas content.