Norwest Energy NL has released its latest quarterly activities report, for the three months ending 31 December 2011.

Highlights:

-Norwest awarded 5 offshore exploration licenses in Wessex Basin, UK (30/12/2011) -Arrowsmith-2 hydraulic fracture stimulation program in place awaiting Ministerial approval -Positive results from northern Perth Basin SPA-0013 airborne Gravity Gradiometry, Magnetics and DTM survey, providing encouragement for conversion to full exploration license in Q1/2012, extending Norwest’s shale gas exploration footprint in the Basin -Planning under way for onshore 50km 2D seismic program over key UK Wessex Basin PEDL239 prospect - scheduled for Q1/2012 -TP/15 application for renewal submitted to DMP, along with the required five year work program, with a number of highly ranked prospects deserving of further evaluation -3D seismic program for North Erregulla prospect straddling permits EP368 andEP426 scheduled to commence February / April 2012, in which Norwest holds a 20% interest -Successful placing and rights issue raised A$4.1M in December 2011 -Norwest becomes a founding member of the Onshore Gas Working Group, a group of companies active in Western Australian onshore shale gas exploration

The December Quarter proved a frustrating one for Norwest, with ongoing environmental review by the Western Australian Minister for Environment and EPA hindering the next phase of assessment of the Arrowsmith-2 shale gas well. The Arrowsmith-2 well was drilled in June 2011 on the EP413 permit to assess the shale gas potential of the northern Perth Basin. As this well is considered an evaluation well for a potentially significant gas discovery, a great deal of effort and expertise has been applied to determine the best possible picture of what this field could hold. Norwest has accumulated a comprehensive dataset of results, and these results suggests that Arrowsmit-2 well (and surrounds) contains all the necessary shale gas indicators across each of the target formations in the well (Kockatea Shale, Carynginia Formation, Irwin River Coal Measures, High Cliff Sandstone) – Norwest now just needs the opportunity to run the hydraulic fracture stimulation and associated well test program to complete the evaluation process.

Tags: Norwest Energy NL