This isn't a bad outcome - Operating a permit takes a lot of resources that are better spend on high potential projects like Lockyer Deep. Arrowsmith was never going to be commercial - mediocre flow rates from unconventional oil & gas. Lack of any fracking legislation in WA puts this way too far into the future and in the meantime we have to keep paying admin and permit fees each year. Don't forget that NWE is also liable for their share of costs to P&A the well and rehab the site - probably $500k of NWE capital that is better put to use elsewhere. The deal is hardly a major cash injection but it is saving us a few $100k each year and gets us out of the rehab obligation. It also allows management to focus on growth rather than managing reports and joint ventures.
NWE Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
