Norwest has a lot of cash in the bank since selling its Cliff...

Norwest has a lot of cash in the bank since selling its Cliff Head interest and the $200,000 a quarter from Jingemia pays the office, salary and other overhead costs. New CEO Joe Salamon is still finding his feet though expect a statment about future direction of the company in a month or so, maybe sooner

Best current asset is interest in AC/P32 which lies in the southern part of the Vulcan Basin in the Timor Sea. They are committed to drill a well on this lease before year's end but have no hope of doing so. They will therefore need govt approval to extend the commitment. They are currently seeking a farm in partner.

AC/P32 is surrounded by some exisitng production and discoveries and contains some big oil prospects including Magnolia 257 mbbls oip, Wisteria 158 mbbls oip, Azelea 878 mbbls oip, Lead A 58 mbbls oip and Updip Longleat 45 mbbls oip.

You would have to think in that location and with those sort of numbers, Norwest would be inundated with offers but apparently not. A couple of companies have made enquiries but no firm expressions of interest. That may have changed as a result of the Good Oil Conference. Although Norwest did not present it had a booth in the exhibition hall and was distributing its farm out offer.

As Graham says Joe Salomon attended the Nido EGM as an outgoing Director and no doubt the two companies will work together in the future, possibly in the North Sea if Nido's extant bids are successful.

Its a case of watch this space with Norwest. We don't see much downside given the cash balance, asset base and Jingemia revenues so have taken a largish position in the stock.