Hi all,I recently bought in at the high 8's with some spare cash...

Hi all,
I recently bought in at the high 8's with some spare cash whilst waiting for another stock to be caught up in the nearology fuss of Kenya's first offshore drill in the Lamu basin. I bought this on impulse like I do with a lot of purchases in life. Hence there was no research done, it was all about the vibe..
Anyways, as I was new to the stock I decided to do some research and found a Resources Stock article that I have pasted below. I figure with the recent sp fluctuations there are other new players on board that may benefit from the info provided below. Apologies to all longs as I am sure you have seen this one before. It is dated Sep 2011.

"Shale Gas Success Around the Corner
With the Arrowsmith-2 exploration well showing every sign of success it is little wonder that Norwest Energy is excited about its shale gas prospects.
DRILLED In JunE thIs year, Arrowsmith-2 intersected a 250 metre section of the primary target Carynginia Formation as well as 330m of the deeper Irwin River Coal Measures.
It also intersected a 460m section of the secondary target Kockatea shale, which overlies the Carynginia, and a 25m section of the high Cliff sandstone located towards the bottom of the well bore.
throughout the drilling, gas shows were seen in the various formations, which have since been verified by data from wireline logs.
norwest technical advisor Andrew sutherland told RESOURCESTOCKS the logs recorded very high dry gas readings in the Carynginia as well as signs of wet gas or oil in the Kockatea, though he noted there was not enough data to determine which
at this stage.
Logs over the high Cliff tight
reservoirs also returned good gas responses, which he said was encouraging.
“the big question with the high Cliff is how big it is. Is it a small local accumulation, in which case
it probably doesn’t have much commercial value, or is it extensive?” sutherland said.
“there is a very large potential updip. testing will help determine if the field is extensive or localised.”
sutherland added that besides the usual suite of wireline logs, norwest also took imaging logs consisting
of resistivity imaging and acoustic imaging that gave the joint venture a very good picture of the bore hole.
norwest and its partners also cut conventional cores from the
primary Carynginia and Irwin River targets. sidewall cores were also acquired throughout the shale sequences and in the high Cliff.
these cores have been
sent to schlumberger subsidiary terratek in utah for core analysis to provide data on geochemistry, tsC maturity and absorption/desorption that will reveal how much gas can be stored
in a particular formation, as well
as information about porosity and permeability. samples have
also been sent to Western Australia’s Curtin university for mechanical properties analysis.
While data from these tests had not being received as this story was published, norwest has already noted highly encouraging signs from the cores.
Gas bubbles formed under the plastic that the cores were wrapped in after being cut from the well bore – a clear sign that gas was being desorbed from the cores.
But it is the steps norwest has
to take after it receives the core data that the company believes will
be especially exciting.
Chief executive officer Peter Munachen said that once the core data had been received, it would be correlated to the logs, allowing norwest to tweak its fracture
stimulation plan to hit the “sweet spots”.
norwest plans to carry out the frac work – expected to start in september – in two stages. The first stage will consist of three frac zones, one in the high Cliff sandstones and two in the Irwin River Coal Measures, which will be flow tested together.
sutherland said this grouping
was due to the higher permeability/ porosity of the Irwin River shales that made it almost a tight gas formation like high Cliff.
this will be followed by the fraccing of the Carynginia and Kockatea shales, which will also be tested together.
The production profiles from
these tests will then be used to estimate how a horizontal well, which norwest believes is essential for a commercial shale project, would perform.
“We have got to design an appropriate appraisal program so we can estimate the lateral extent of these [shales]... then we have to start working on a field development plan and commercialisation,” sutherland said.
Munachen believes that judging from past performance in both
the area and shale, the potential of Arrowsmith-2 is encouraging.
“Beach Energy flowed at 1.8million cubic feet of gas per day from its Holdfast-1 shale gas exploration well. Ironically, Arrowsmith-1 – back in the 1960s – flowed four million cubic feet per day unstimulated from the Carynginia,” he said.
If Arrowsmith-2 flowed at a significant rate, Norwest would
then evaluate it, drill one or two
more wells to establish a contingent resource, bank it and accelerate the pace on building a pipeline to connect to the main pipeline.
From there, Norwest would be able to put in a schedule to drill 50 wells at a rate of 10 a year for the next five years.
Munachen said that while its well partner
AWE had estimated in-place shale reserves of 20 trillion cubic feet of gas in the Perth Basin, Norwest had calculated potential recoverable reserves of 3Tcf in EP-413, where the Arrowsmith well is located.
In April, the US Energy Information Administration released a report on worldwide shale gas resources that pegged basin-wide risked recoverable resources in the Carynginia at 29Tcf and technically recoverable resources in the Kockatea at 30Tcf.
“We used one well for every 80 acres, producing 5 billion cubic feet of gas over its life, which is a reasonable assumption, and extrapolate that out to the available good quality area in the permit, which is about 50,000 acres, to come out with about three trillion cubic feet of producable gas,” Munachen said.
“When you throw in all the logs, we are very encouraged by it.”
He said Norwest’s record as an operator received a boost after the Arrowsmith-2 well came in eight
days ahead of schedule and $2 million under budget.
Success with the fraccing of Arrowsmith-2 could also change
the focus of the Perth Basin. “If it flows gas ... any property in here [the Perth Basin], whether it has shale gas potential or not is going to be valuable real estate,” Munachen said.
Sutherland was also positive
about the TP/15 permit, despite the recent Red Hill South-1 failing to find commercial hydrocarbons.
He noted that while Red Hill South-1 probably failed because the structure was breached, other fault- dependent structures, including Cliff Head, Jingemia, Hovea and Dongara, had worked in the Basin.
“The fault doesn’t appear to have sealed at Red Hill South and a number of other dry wells that have been drilled in the area,” Sutherland said.
“Hopefully, if we can get a better handle on that, we can do a better job on some of our other projects.”
On Norwest’s other plans, Sutherland said the company would gain a good regional picture from the special prospecting authority
it secured in April over 21 onshore blocks in the northern Perth Basin through its full tensor gradiometer survey.
“We are not looking for structures here, we are trying to look for the basin shape,” he said.
Munachen also pointed to Empire Oil & Gas’ plans to shoot 3D seismic over the North Erregulla prospect, which straddles the boundary of EP 368 and EP 426 (Norwest 20%), as evidence of the increased activity in the Basin.
“So we have got things lined up,” he said. – Bevis Yeo"