Oil and gas explorer Norwest Energy spent the December quarter focused on the Lockyer Deep-1 Gas Discovery.
Lockyer Deep-1 is part of exploration permit EP368, which is a joint venture between Norwest and Mineral Resources’ completely owned subsidiary Energy Resources.
On November 2, the company announced it has suspended product testing at Lockyer after an issue occurred when production casing was being run from surface to total depth.
Specifically, the cement was not hitting the annulus during casing due to a suspected wiper plug that was held up.
This suspension resulted in an increased cost to $18.5 million from the original $14.5 million.
Prior to suspending operations, a very significant conventional gas discovery was confirmed.
The test tree has now been installed and perforating guns have been sourced for production testing which will confirm gas flow rates and gas composition.
During the quarter, Norwest also mapped six new exploration leads across the EP368 and EP426 permits.
These leads offer significant follow-on potential with Operator ERL preparing to acquire the Ringneck 2D seismic survey.
The survey will begin in March and will aim to improve the structural definition of the area to the southeast of Lockyer Deep.
Subscribe to Oil & Gas Today for the latest industry news.