norwest to farm-out to bharat petroresources

ASX: NWE
19 August 2010
ASX Announcement
Norwest to farm-out EP413 and TP15 interests to Indian
upstream company Bharat PetroResources Limited
Indian upstream company, Bharat PetroResources Ltd ( BPRL) has executed
a letter of intent with Norwest ( ASX: NWE ), for a farm into two of Norwests
Perth Basin permits-EP413 and TP/15, by providing up to $15m in exploration
and drilling funding.
BPRL will contribute up to A$10m towards the drilling and testing program to evaluate the
shale gas potential in EP413 to earn 50% of Norwests 55.606% interest.
In Norwests fully owned TP/15 permit, BPRL will provide up to A$4.5m of the estimated
costs of A$7.5m of the drilling costs for Red Hill South (including testing and completion,
and geological and geophysical studies) to earn 50% interest in the permit. NWE will fund
up to A$3m of the total estimated drilling program.
Norwest will also receive re-imbursement of A$500,000 of past costs from BPRL
BPRL has received the necessary approvals to proceed with the transaction and is currently
conducting its formal due diligence process, to be completed within 20 days of the date of
this announcement. The farm-out transaction is also subject to Western Australian
Department of Mines and Petroleum approval.
About BPRL
Bharat PetroResources Ltd is a wholly owned subsidiary of Bharat Petroleum Corporation
Ltd, a government company engaged in refining and marketing of petroleum products. BPCL
is quoted on the Bombay Stock Exchange and is listed at number 307 in the 2010 Global
Fortune 500.
BPRL is the upstream arm of BPCL with both Indian and worldwide exploration projects.
Norwest CEO Peter Munachen said Norwest was very pleased that BPRL will join these
two Perth Basin projects. We have worked with them previously on AC/P32 in the Timor Sea
and on the Cobra gas project in the UK North Sea waters. Through those projects we
developed a strong working relationship and respect for each other and we look forward to
working with them again for our mutual success.
Norwest Energy NL ASX Announcement | 19 August 2010
NORWEST ENERGY NL | ABN: 65 078 301 505
288 Stirling Street Perth Western Australia 6000 | PO Box 8260 Perth Business Centre Western Australia 6849
Tel: +61 8 9227 3240 | Fax: +61 8 9227 3211 | Email: [email protected] |
Web: www.norwestenergy.com.au
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Drilling
Norwest plans to drill at both EP413 and TP15 by the end of 2010 or early 2011 and is in the
process of sourcing a suitable drill rig capable of drilling both drill targets.
EP413 is considered to have good potential for shale gas and it is proposed to drill at
Arrowsmith. In the 1960s, Arrowsmith 1 flowed gas at 4MMcf/d. In the event of success,
commercial quantities of gas would readily find a market.
EP413 is close to the Dampier to Bunbury, and Parmelia gas pipelines and near to the
Perth/Southwest industrial and domestic markets. WA also has large unmet future gas
demand underpinned by gas prices of circa $8mcf. These factors augur well for Norwest.
The Red Hill South prospect in TP/15 has potential oil recoverable of 9MMbbl. Well
planning and permitting is advanced and subject to sourcing a suitable drill rig will be drilled
towards the end of Q4/2010 or early 2011.