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Norwest Energy Resumes Arrowsmith-2 Flow Testing

Norwest Energy (ASX: NWE) has resumed flow testing operations at its Arrowsmith-2 unconventional shale gas well in the north Perth Basin, Western Australia.

Notably, analysis of surface pressure and sonic fluid level data indicate the Kockatea Shale is approaching its original pressure with positive signs the reservoir is able to recharge.

As a further step in the evaluation program for this well, a pressure / temperature gradient survey is currently being performed to confirm fluid interfaces in the wellbore, and to assess current reservoir pressure at the perforations.

Norwest had shut-in Arrowsmith-2 in mid-December 2012 at the conclusion of Kockatea swabbing operations to monitor pressure build-up characteristics of the fracture stimulated zone.

About 78% of the injected fracture fluids have been recovered from the Kockatea after swabbing the well to a maximum planned depth of 2,600 metres.

Data acquired from this program, and other regional oil production information will assist in providing the necessary dataset for evaluators to work towards producing a resource booking on the Kockatea Shale.

Once evaluation of the Kockatea is complete, the interval will be isolated and the plug milled out between the Kockatea Shale and the Carynginia Formation. This will enable flow back and clean-up to recommence on the Carynginia interval.

This will start once the necessary equipment becomes available, currently estimated to be towards the end of this month. It is anticipated that the testing of all remaining zones will take about 3-4 months.

Arrowsmith-2

While gas flow rates were not confirmed during initial flowback of the well from the Kockatea, Carynginia and Irwin River Coal Measures targets due to limited flow back time, Norwest's ultimate objective for the current operations is to establish gas rates for contingent resource calculations from each of the individual formations.

The company also believes the High Cliff Sandstone, a tight sandstone target, will deliver a higher flow rate than the reported rate of 777,000 cubic feet of gas per day once the zone is fully cleaned up.

Partners in EP 413 are operator Norwest with 27.945%, AWE Limited (ASX: AWE) with 44.252% and Bharat Petroleum (27.803%).

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