This is quite a significant announcement and couldn't have come at a better time.
NWE's reprocessing of seismic demonstrates how incredibly prospective these two tenements are and if anything highlights why the company has in recent times simplified its assets / prospects and decided to strategically focus on EP368 and EP426.
This pic is worth a thousand words - it highlights how significant the onshore Perth Basin is. With Waitsia, Beharra, West Errugulla and potentially Lockyer / North Errugulla, industry experts are talking many many multiple TCF discoveries to be made. This has the potential to put it up there with the NWS discoveries of the 70's/80's.
I thought it worth drawing your attention to the potential of Lead E (the elephant in the room, so to speak). See below figure from STX/WGO indicating they will be undertaking 3D seismic across the top of EP469 which borders both of NWE's tenements... this 3D seismic is scheduled for later this year.
This will be quite significant seismic not just for STX/WGO but also NWE/MIN. It has the potential to delineate further leads and IMO possibly confirm the West Errugulla fields could be connected with Lead E from NWE's announcement today. All depends on the resulting fault structures they find from the seismic but you can easily see the potential for massive connected and interconnected structural fault fields.
So much to still look forward to with NWE, beyond the current LD-1 well, which everyone has firm eyes on.
Just reflecting... I would very much love LD-1 to be a massive success and NWE go on to raise $50m @ 5c and launch into a massive drill program across all their prospective leads. Just my musings as I can see NWE potentially becoming a significant mid-size energy company off the back of these impressive prospects.
Not that I think it is going to happen... I still believe LD-1 will be a screaming success and MIN will swallow NWE up lock, stock and barrel.
But... perhaps todays announcement is also a shout-out to the market... to the other O&G majors out there... that NWE is sitting on some great ground and if there was to be a takeover, maybe it will be competitive and not just a fait accompli with MIN. As a shareholder, I would love to see that play out.
GLTA
