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ASX: NWE
27 August 2012
Arrowsmith-2 Update
Stages 3 and 4 - Carynginia Formation
• Hydraulic fracture stimulation of Stages 3 and 4 - Lower and Middle Carynginia Formation successfully completed
• Cleanup and flow back of the two Carynginia stages commenced jointly, with gas to surface early during flow back
Norwest Energy (ASX:NWE) is pleased to announce that the hydraulic fracture stimulation of Stages 3 and 4 of the Arrowsmith-2 program – the Lower Carynginia Formation (2890–2940m) and the Middle Carynginia Formation (2824–2875m) are now successfully complete. The two stages are currently being cleaned up and flowed back together. Gas was visible at surface within 3 hours of flow back. It is planned to conduct the flow back of the co-mingled two stages up to a seven day period, with the objective to attain maximum clean-up of the well and to establish a combined stabilised gas flow rate during the time available. A promising sign with this zone is that the well is currently producing back a consistently high volume of injected water, along with gas. As the amount of total injected water returned to surface increases, it is expected that the gas rate will also continue to increase.
Mr. Peter Munachen, Norwest CEO commented “Results from the Carynginia stages 3 & 4 are excellent, and add to the successful results of stages 1 and 2, the High Cliff Sandstone and Irwin River Coal Measure targets. Norwest has now successfully fracced four stages from the Arrowsmith-2 program, with the remaining stage 5 being the Kockatea Shale, the shallowest target in the well. The Kockatea Shale is a well-known hydrocarbon source rock throughout the Basin, and is therefore another promising target to conclude the program.”