i have been a thinkin

In NWEs ASX announcement dated 18 January 2010 regarding TP15 Update (Perth Basin), Peter Munachen CEO Norwest Energy stated :

Detailed interpretation by Norwest Energy (ASX: NWE) of the airborne FTG (full tensor gradiometry) survey results has confirmed the structural integrity of the Xanadu and Redhill South prospects, supporting the companys preliminary view of October 2009 that these are the prime targets for the 2010 drilling season.

The two targets Xanadu and Redhill South are in an underexplored northern Perth Basin permit, TP/15 (Norwest 100%).

The company plans to drill at least one, and possibly both, of these targets during Q4, 2010 and is now focused on progressing both the drilling and farm-out processes. Importantly, both wells can be drilled from onshore sites using deviated drilling techniques.

To achieve the drilling objectives Norwest is in the process of appointing a well construction/drilling engineering specialist group to assist with sourcing a suitable drilling rig, well design and with planning and permitting.

Interpretation confirms targets
Interpretation of the FTG survey undertaken by Bell Geospace confirms the Xanadu seismic interpretation map. Norwest believes the prospect has a potential 98 million barrels (MMbbl) of oil in place with potential for 27MMbbl of recoverable oil. Additionally, the Redhill South prospect could hold up to 27MMbbl oil in place with potential for 7MMbbl oil recoverable, which would be of a similar size to Jingemia, a nearby onshore producing field.

Now the FTG data over TP/15 has been interpreted and the highly prospective drill targets have been confirmed, farm-in negotiations have gathered pace, Mr Munachen said. We are in advanced discussions with a number of companies, both international and local.


i.e. Now that they have interpreted the FTG results for TP15, they are progressing both the drilling and farm-out processes farm-in negotiations have gathered pace, Mr Munachen said. We are in advanced discussions with a number of companies, both international and local

Ive been a thinkin to keep the punters occupied while we wait for the flurry of announcements over the coming months re: Quarterly Activities Report; TP15 survey results; JV/farm-in partners; Nth Erregulla survey results; appointing a well construction/drilling engineering specialist group to assist with sourcing a suitable drilling rig, well design and with planning and permitting; interpretation of FTG survey of southern Englands Wessex Basin tenements to pass the time, I thought we could speculate on who the JV/farm-in partner could potentially be :-)

After trawling through nearby oilers websites, I think that an AWEsome JV Partner would be

AWE Limited (AWE, formerly Australian Worldwide Exploration Limited), who are engaged in exploration, development and production of oil, gas and condensate in Australia, Argentina and New Zealand. AWE concentrate on exploration and appraisal-type assets, in regions of proven prospectivity and where there is a high chance of commercial success.

2008-2009 Highlights

* Strong production performance for the year
* Reported profit of $89 million, despite the tough economic conditions
* Oil and gas reserves rose by 30% to 69 million BOE
* A substantial exploration campaign started, with $175 million to spend in 2009-10
* Company recorded zero LTIs for the year, with no environmental issues
* Balance sheet remains strong, with $356 million cash and no debt
* AWE continues to identify and pursue value accretive acquisitions in our core business to help generate business growth

Source: www.awexp.com.au/irm/content/09annualreport/highlights.html

Chairmans Review 2008-2009

As a result of prudent management, AWE is blessed with a strong balance sheet, cash in reserve and zero debt. We have taken the strategic view that exploration represents our best opportunity to deliver significant growth in shareholder value and have accordingly committed over $175 million to a drilling program over the next 12 months. Concurrently we continue to evaluate merger and acquisition opportunities but we will be primarily driven by our technical assessment of the rocks and the fluids to ensure that only profitable additions to the portfolio are pursued.

Source: www.awexp.com.au/irm/content/09annualreport/chairmansreview.html

So why do I think AWE would make an AWEsome JV Partner?

AWE is a mid-cap oil producer and explorer with producing tenements in the Perth Basin either side of NWEs TP15 (100% owned) near-offshore coastal strip.





AWE have:
* a Market-Cap of $1.477billion
* no debt
* a strong balance sheet with $356 million cash reserves
* 8,746,000 boe Total Production for 2009
* already established infrastructure and producing wells (oil and gas) both on-shore and off-shore near TP15 targets
* current JV involvement with NWE in EP413 and L14
* recently indicated they are looking for merger/acquisition opportunities
* a strategic view that exploration represents their best opportunity to deliver significant growth in shareholder value.
* Indicated that they are going to spend $175 million on exploration in 2009-10. (NWEs market cap is $17 million).





AWE have 69 mboe oil and gas reserves. NWE potentially has 115 mboe recoverable oil reserves (yet to be proven).
Oil production in the nearby Cliff Head field peaked at 12,000 boepd and is currently 3,500 - 4,200 boepd. They are currently planning workover operations to try and improve production. NWEs nearby, potentially new fields must be a tempting proposition.

I think a JV/merger/take-over (friendly or hostile) by AWE would be AWEsome and help unlock value for NWE shareholders.

What do you think?

As always DYOR and good luck to current and future NWE holders!

Cheers,

GrayNomad :-)