Energy Resources has executed a rig sharing agreement with Strike Energy and a drilling contract with Ensign Australia.
The rig sharing agreement provides for Energy Resources to assume control of the Ensign 970 rig upon completion of operations at Strike Energy’s West Erregulla-5 well.
All long lead teams are in place, site works at the Lockyer Deep-1 well location are nearing completion, and Energy Resources has received approval from the Department of Mines, Industry Regulation & Safety to suspend the exploration permit EP368 year two end date by six months from June 29, 2021 to December 29, 2021.
Norwest managing director Lain Smith said securing the Ensign 970 is a major milestone for Norwest and the EP368 joint venture.
“The significant scale of the Lockyer Deep-1 prospect means that exploration success will be transformational for the company. With the well scheduled to spud during July this is an exciting time for Norwest Energy shareholders,” Smith said.
The Lockyer Deep-1 well located has been elected to test a very large, fault-closed three-way dip structure at the Kingia and High Cliff levels within the Permian gas play’s sweet spot.
Mineral Resources, which owns Energy Resources, managing director Chris Ellison said the drilling of Lockyer Deep-1 will be a significant milestone for the company because it will signify the start of an extensive conventional gas exploration program in its onshore Perth Basin and Northern Carnarvon Basin acreage.
“Lockyer Deep is an exciting prospect and, if successful, will help us use natural gas as a transitional fuel to Net Zero Emissions by reducing our reliance on diesel,” he said.
“We are fully committed to achieving net zero emissions by 2050 and believe owning our own natural gas supply will complement the significant advances we are making in renewable energy, particular around solar and wind power.”
In January this year Norwest announced it has raised $2 million to fund drilling of the Lockyer Deep-1 exploration well.
The company advised that the funds would also be allocated toward planning and preparation for a 3D seismic survey across EP368 and EP426, desktop studies on exploration permit TP/15 and general working capital.
Norwest estimates that the Lockyer Deep and North Erregulla Deep prospects have a 38 per cent geological chance of success (GCoS), with Energy Resources securing land access to the Lockyer Deep-1 well location for preparation and construction of the well pad.