Energy: Norwest’s gas resource climbs following success of neighbouring well
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Sometimes all you need is for your neighbour to break out some good news in order to get some of the reflected glory.
This is exactly the position that Norwest Energy (ASX:NWE) is in after Strike Energy (ASX:STX) and Warrego Energy’s (ASX:WGO) West Erregulla-2 well in the Perth Basin, WA, flowed at an initial rate of 69 million cubic feet of gas per day, which compares favourably to flow test results from the nearby Waitsia gas field.
Norwest said the result upgrades its Lockyer Deep and North Erregulla Deep gas prospects that are located to the north and on trend with West Erregulla-2.
The company incorporated the new data from its neighbours’ well into its subsurface model for the two prospects and upgraded the potential resource within the target Kingia and High Cliff formations to 459 billion cubic feet (Bcf) of gas.
Together with operator Energy Resources, the energy arm of Mineral Resources (ASX:MIN), Norwest expects to make a decision in the coming weeks on the drill location for a required commitment well that will be drilled in the first half of 2020.
Shares rose 33 per cent to 0.4c this morning.
Brookside Energy (ASX:BRK) has likewise received a boost to the potential of its landholding in Oklahoma’s famed Anadarko Basin after a nearby well started flowing oil and gas at an initial rate of 2,067 barrels of oil equivalent. While the company only has a tiny (0.02 per cent) stake in the Ringer Ranch 1-20-17XHM well, it said the result confirmed the “highly-productive nature” of the target Sycamore formation.
Elixir Energy (ASX:EXR) is poised to start drilling its first core hole in Mongolia to assess the potential of the targeted Permian aged coal seam to produce gas. The planned drilling of up to three core holes will also aid the company in calculating potential resources at its Nomgon IX project.