The well, which the company has a 20 per cent interest in, is located in the Perth Basin exploration permit EP368 and is targeted for drilling in the first half of 2021.
The company has advised that the funds will 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.
Managing director Iain Smith said Norwest is pleased to have completed the capital raising and appreciate the support of its major shareholders.
“The company is now in an excellent financial position as we prepare to drill the Lockyer Deep gas prospect, which comes on the back of three very significant and valuable Permian discoveries, while discussions regarding timing of a rig slot continue, we remain optimistic of drilling during the first half of 2021,” Smith said.
Last year, the Western Australian Department of Mines, Industry Regulations & Safety approved an application from Norwest and Energy Resources to suspend their EP368 work program commitments by 12 months.
The joint venture advised that the purpose of the application was to provide additional time for drilling of the Lockyer Deep-1 exploration well in the Perth Basin, which was previously scheduled for completion by June 29, 2020.
The Lockyer Deep-1 well location was selected 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” and on trend with the recent gas discoveries.
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.