the real game in town

Now that the distraction of Red Hill south is out of the way lets focus on whats next for NWE. Per the December Quarterly Activities Report we have:

EP413 (Norwest 27.803%) - Unconventional - Shale Gas potential

Current activities and planning Norwest and its EP413 JV partners are planning to drill Arrowsmith #2 in April 2011 to evaluate the potential of the shale in the Arrowsmith area where gas previously flowed from the Carynginia. The objectives of Arrowsmith #2 are to recover core over the most prospective shale sequences, to drill to basement to test conventional targets and then to plug back and drill horizontal in the Caryinginia to test for production from the natural fractures and if necessary run hydraulic fracs.

Xanadu

As the main focus was on Red Hill South work on Xanadu was restricted to reviewing previous seismic data in conjunction with 2009 FTG results.

Xanadu has a potential of 98MMbbl oil in place and 27MMbbl recoverable. The prime targets are the High Cliff Sandstones, which are the producing reservoirs for several fields in the northern Perth Basin, including the 60MMbbl oil in place Cliff Head project, 10km north-west of Xanadu.

Does anybody have any idea where progress is on this prospect??

Puffin (Norwest 1.25% ORRI)

AED Oil Limited (AED) is still awaiting the results of the the Fugro Cartier 3D seismic survey over AC/P22 that was acquired during 2010. They report that depending on the results of the survey they will work with joint venture partner Sinopec to assess the merits of a development program for the existing reserves on AC/L6 and the new potential identified on AC/P22. They also report that there are a number of significant structures apparent on the assessment of the previous seismic over AC/P22 and, following the drilling of Great Auk in 2009, there is confidence in an oil migration model to fill structures identified. AED expects to further report on the potential and timing of a Puffin development by mid-2011. AED has
a 40% stake in the Puffin field while Chinese major, Sinopec has 60%.

Norwest has a 1.25% overriding royalty interest which covers the entire AC/P22 permit and any production derived within the bounds of the permit.

Where does this currently stand? When can NWE start expecting an income from this?

Hope this starts some positive conversation.