Mar 12 - Norwest Energy Plans Arrowsmith-2 Fracc Program in June

Source Press Release
Company Norwest Energy NLAWE Limited 
Tags Unconventional Resources, Upstream Activities
Date March 19, 2012

Norwest Energy advises that the hydraulic fracture stimulation program for the Arrowsmith-2 well (permit EP413, northern Perth Basin) is now locked in. Halliburton Australia has confirmed that it will mobilize its Shale Fracturing Equipment to Norwest Energy’s Arrowsmith-2 location on completion of current projects in the Eastern States. Subject to weather and operational progress of these projects, mobilization is presently scheduled by Halliburton for early June.

Norwest Chief Executive Officer, Peter Munachen said 'This is great news as the Shale Fracturing Equipment is critical to proving the shale gas potential at Arrowsmith-2. Success will ultimately contribute to the development of what is expected to be a significant shale gas industry in Western Australia, generating economic benefits to local communities such as employment, training and associated business opportunities, as well as significant royalties to the state.'

With the potential of an early June mobilization Norwest will now accelerate the planning, procurement and site preparation for delivery of the fracc spread, and for the commencement of the Arrowsmith-2 hydraulic fracture stimulation and flow testing program.

The Arrowsmith-2 well was successfully drilled in June 2011, with the drilling and evaluation results exhibiting necessary shale gas indicators, with the hydraulic stimulation and flow testing now the final phases to be undertaken in order to complete this proof of concept program. These final results will then provide the necessary data t

High-grade target intervals for subsequent development. Scale up the flow results from the vertical well to predict production rates for horizontal wells. Design an appropriate program for the next phase. Estimate contingent resource volumes. The participants in the EP413/Arrowsmith Joint Venture are: Norwest Energy (Operator) 27.945%; AWE (via subsidiary ARC Energy) 44.252%; Bharat PetroResources 27.803%.

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