today's announcement

drilling and prelim logs to be completed by friday .. should make for interesting speculation on the price during next couple of days ..


Cliff Head 3 Appraisal Well - 20 inch casing set

NORWEST ENERGY NL 2003-01-07 ASX-SIGNAL-G

HOMEX - Perth

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Norwest Energy NL advises that as of 6am (Western Standard Time)
today the Cliff Head 3 appraisal well had set 20 inch casing and
13(3/8)inch float shoe. The current activity was nippling up the
diverter. It is expected that Cliff Head 3 will penetrate the
anticipated reservoir, reach total depth and run a preliminary set of
wireline logs before the end of this week.

Cliff Head 3 is the first of at least 3 exploration and appraisal
wells to be drilled by the Ensco 53 jack up during the 1st Quarter
2003 in both WA-286-P and adjacent TP/15. A number of contingent
wells are planned depending upon the results of the firm drilling
programme. As such the total number of wells to be drilled will be
determined as the programme progresses.

Cliff Head 3 surface location is 2.4 kilometres northwest of the
bottom hole location of the Cliff Head 2 appraisal well. Cliff Head 3
will be drilled as a near vertical well to a total depth of 1,311
metres subsea. This well will evaluate the reservoir potential of the
upthrown fault block in the northern portion of the Cliff Head Oil
Field.

Subject to the initial drilling results, one to two sidetrack holes
may be drilled from the Cliff Head 3 surface location. The first
would be designed as a minimal sidetrack to twin the original (Cliff
Head 3) hole so as to provide an optimum opportunity to core the main
zone/s of interest, run casing and test the potential reservoir. The
second potential sidetrack, dependent upon the results of the two
earlier holes, would be designed to further appraise the field
through the drilling of an additional higher-angled sidetrack hole to
a bottom hole location approximately 750 metres to the south of the
Cliff Head 3 surface location.

Because the potential reservoir depth is relatively shallow
regionally (1,100 metres to 1,900 metres subsea), individual wells
are not expected to take more than a week to drill.

Following drilling and if warranted, testing, of the Cliff Head 3
appraisal well together with any sidetracks, the Ensco 53 Jack up
drilling rig is scheduled to drill Twin Lions 1 in the adjacent TP/15
permit. The Twin Lions structure is situated about 5 kilometres to
the north-northeast of the Cliff Head Oil Field and is geologically
similar, forming part of the same trend.

If Twin Lions 1 is successful, it is likely that a second well will
be directionally drilled from the number 1 location to test the
extent of any hydrocarbons westward into WA-286-P.

FIRM WELLS

WELL PERMIT POTENTIAL EQUITY
(MM BBL IN PLACE)

Cliff Head 3 WA-286-P 80-100 5.0%
Twin Lions 1 TP/15 360 10.0%*
Mentelle 1 WA-286-P 50 5.0%

* paying 20% plus testing capped

Please Note: Norwest plans daily report during the drilling of these
wells and hence will keep the market fully appraised.


The WA-286-P Joint Venture comprises:

EQUITY

Westranch Holdings Pty Ltd (a subsidiary
of Norwest Energy NL) 5.0%

Roc Oil (WA) Pty Ltd (Operator) 30.0%

AWE Oil (Western Australia) Pty Ltd 27.5%

Wandoo Petroleum Pty Ltd 25.0%

ARC Energy NL 7.5%

Voyager Energy Limited 5.0%


The TP/15 Joint Venture comprises:

EQUITY

Westranch Holdings Pty Ltd (a subsidiary
of Norwest Energy NL) 10.0%

Hardman Oil & Gas Pty Ltd 30.0%

AWE Oil (Perth Basin) Pty Ltd 25.0%

Roc Oil (WA) Pty Ltd (Operator) 20.0%

ARC Energy NL 7.5%

Voyager Energy Limited 5.0%

Bounty Oil and Gas NL 5.0%

I Burgess
CHIEF EXECUTIVE OFFICER AND DIRECTOR

For further information, please contact:
Ivan Burgess CEO/DIRECTOR
Ph: 08-9228 8251
E-mail: [email protected]
Web Site: www.norwestenergy.com.au