A revision of prospective resources has led to a gas resource upgrade for Norwest Energy (ASX: NWE) at its Lockyer Deep and North Erregulla Deep prosects, which are close to Strike Energy (ASX: STX) and Warrego’s (ASX: WGO) West Erregulla-2 gas discovery in Western Australia’s North Perth Basin.
West Erregulla recently achieved a flow rate of 69 million standard cubic feet of gas per day from the Kingia Formation.
The success at West Erregulla-2 prompted Norwest to review Lockyer Deep and North Erregulla
According to Norwest, West Erregulla-2 indicates “extensive and high-quality sandstone reservoirs can be expected to be encountered” within its EP368 and EP426 exploration permits.
Norwest has incorporated new data including porosity and column height into its subsurface model for Lockyer Deep and North Erregulla Deep.
As a result, a combined high case prospective resource of 1,122 billion cubic feet of gas has been estimated for the prospects.
With a 20% interest in EP368 and 22.22% of EP426, Norwest’s share in the overall resources is a combined high case of 224Bcf.
Norwest claims this estimate is a “significant upgrade” of its prospective resources within the Kingia and Hight Cliff reservoirs.
It has also resulted in North Erregulla Deep being upgraded to drillable status.
Energy Resources is the operator and holds the remaining interest in both permits.
The duo expects make a decision on the drill location of the first well at EP368 “in the coming weeks”.
Nearby West Erregulla-2 well
West Erregulla-2 was discovered in August, with Strike and Warrego describing the find as “staggering”.
Since August, Strike and Warrego have been advancing West Erregulla-2, with perforation undertaken of three intervals totalling 48m last week from 4,799m.
Each interval flowed with the well achieving a maximum rate of 69MMscf/d on a 2-inch choke at 700 psig well head pressure over an hour.
Warrego chief executive officer and managing director Dennis Donald said the initial gas flows from West Erregulla-2 had “exceeded” expectations.
The duo will be spending 2020 “fully” defining the field and extent of the resource.
“Only one-third of the EP469 block area has been mapped by 3D seismic and we are optimistic that further West-Erregulla-like resources will be identified during the 2020 campaign,” Mr Donald said.
By early afternoon trade, Norwest’s shares had rocketed more than 33% to $0.004.