Norwest Energy NL (Norwest) has now received approval from the Western Australian Department of Mines and Petroleum (DMP) to commence hydraulically fracture stimulating the Arrowsmith- 2 well in EP413. Approval by the DMP follows the decision of the Environmental Protection Authority (EPA) to not assess the Arrowsmith-2 proposal.

The DMP approval followed all necessary documentation being reviewed and accepted, including the Arrowsmith-2 Environmental Management Plan.

Norwest was well placed to commence stimulation operations in early September, however due to a third party referral to the EPA, these plans were suspended, pending the EPA decision of non-assessment and full approval by the DMP.

Even though Norwest now has both the EPA decision and DMP approval, there is insufficient time available to conduct the complete hydraulic fracture stimulation program before the equipment is mobilised to its next contract in the Northern Territory. Accordingly, Norwest is considering all options available to gain maximum operational advantage and cost benefits prior to the spread departing the Basin.

It is anticipated that at the completion of the Northern Territory program, the frac spread will be relocated back to the northern Perth Basin later in 2011, at which time the Arrowsmith-2 campaign will be resumed.

The participants in the EP413/Arrowsmith Joint Venture are, Norwest Energy NL (Operator) (ASX: NWE) 27.945%, AWE Limited (via subsidiary Arc Energy Ltd) (ASX: AWE) 44.252%, Bharat PetroResources Ltd 27.803%.

Tags: Norwest Energy NL