ASX-listed Norwest Energy, along with JV partner and Operator, Mineral Resources, has lodged the environmental plan to drill its highly anticipated Lockyer Deep gas exploration well located near Dongara, north of Perth. Norwest and Min Res are targeting a prospective resource of up to 1.2 trillion cubic feet of gas at the prospect that lies only 15 kilometres north of Strike Energy’s huge West Erregulla gas find.
The Lockyer Deep-1 test well is located in the North Perth hydrocarbon basin where Norwest has managed to team up with Chris Ellison’s $2.6 billion market capped Mineral Resources to drill out the prospect. Mineral Resources holds an 80 per cent working interest in the well that is also just 15 kilometres east of Beach Energy and Mitsui’s giant Waitsia gas field.
Norwest said it is fully funded for its 20% share of the Lockyer Deep-1 well with around A$3M cash in the bank and the JV has already locked in landowner support to access the drill site. It has also received support from the State regulator with a 12-month extension on its lease to get the Lockyer Deep-1 well drilled.
Planning for the actual drilling operation is also well advanced with Min Res already placing orders for much of the equipment and materials needed to drill the well. Such orders can take months to arrive on site from diverse source locations as remote as the Eastern States and even overseas.
The Iain Smith-led Norwest said recently that the Lockyer Deep JV was collaborating with other Perth basin operators to secure a drill rig for a multi-well program commencing as early as the third quarter of this year. Such collaboration is common in the Australian oil patch as operators look to share the economies of scale in respect of pricing, and logistics.
The main benefit from a collaborative rig contract is the ability to share the multi-million-dollar cost of mobilising and demobilising the rig to the Perth basin, often from as far away as South Australia or Queensland.
Strike Energy said last month it had locked in a rig contract for up to three wells at its West Erregulla gas field, with drilling set to commence within the next two months. Strike claims the deep Permian-aged gas trend discovered initially at Waitsia has so far uncovered over 3 trillion cubic feet of gas with a phenomenal 100 per cent exploration drilling success rate.
There is nothing quite like a bit of nearology when it comes to oil and gas finds and Norwest’s project has it in spades – now for some success with the drill bit….
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
By Matt Birney
