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Norwest Energy Encouraged By Gas Flow From Second Stage Of Arrowsmith-2 Fracture Stimulation

Norwest Energy's (ASX: NWE) Arrowsmith-2 well continues to please with the earlier than expected flow of gas to surface, following the successful fracture stimulation of the Irwin River Coal Measures.

Strong down-hole pressures are also assisting in the flow back of frac fluids during the clean-up of the Irwin River - a hybrid shale and sandstone interval, one of the primary objectives at Arrowsmith-2 along with the shallower Carynginia Formation.

While gas flow rates are expected until the well clean up and flow back is further advanced, the initial signs are positive.

The results are extremely encouraging as they comes on the back of the successful flow of gas from the deeper secondary objective High Cliff Sandstone Formation tight gas play at a peak rate of 777,000 cubic feet and an average rate of 446,000 cubic feet per day.

Preparations are now being made for Stages 3 and 4 of the fraccing program, which will target the Lower Carynginia (2,890 - 2,940 metres) and the Middle Carynginia (2,824 - 2,875 metres) shales.

Each of these two intervals will be fracced separately, and then flowed back together, with diagnostics used to identify the source of flowback at surface.

Arrowsmith-2

Arrowsmith-2 well is a proof-of-concept well, with the first phase being to demonstrate that the targeted shale and tight gas intervals will flow gas when hydraulic fracture stimulation techniques have been used.

In phase 2, these demonstrated rates will be up-scaled to estimate likely production from horizontal wells completed in the same formations. Commerciality of these zones can then be assessed.

The targeted formations from shallowest to deepest are the Kockatea Shale - a secondary objective, the Carynginia Formation, the Irwin River Coal Measures and the tight gas High Cliff Sandstone Formation.

It is estimated that the Carynginia Formation alone has the potential to produce multi trillion cubic feet of gas from the 125,530 acre EP413.

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

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