Norwest Energy has executed an agreement with AWE Perth, part of Mitsui E&P Australia, to assign Norwest’s 27.945 per cent interest in EP413, onshore Western Australia.
AWE will pay Norwest $100,000 cognitional upon completion, which is subject to approval.
The company states that the transaction with AWE strengthens Norwest’s balance sheet and enables it to focus on its finical resources on its three high-impact Perth Basin exploration permits: EP368, EP426 and TP/15.
The 508 km2 EP413 exploration permit is located within the north Perth Basin, adjacent to the Woodada and Beharra Springs gas fields.
The permit hosts a significant unconventional hydrocarbon resource, which was the subject of exploration drilling in 2014 and a 3D seismic survey in 2015.
The survey was designed to assess the extent of the resource surrounding the Arrowsmith-2 well, and provides a substantial improvement in structural definition and understanding of the area’s geology.
The Department of Mines, Industry Regulation & Safety (DMIRS) recently granted a suspension/extension of the work commitments pertaining to the permit, pending completion of the state government’s implementation plan for future hydraulic fracture stimulation operations.
Norwest does not regard the Arrowsmith unconventional resource as a commercial development opportunity at this time, particularly in light of the recent prolific gas discoveries that have been made to the east within Permian strata, and which offer excellent scope for low cost, conventional gas development.
A number of conventional exploration plays do exist within the permit, offering the opportunity for future exploration of both oil and gas.