THE CONFERENCE CALLER: Like other Perth Basin explorers, Norwest Energy (ASX: NEW) is reviewing the oil and gas prospectivity of its Western Australian onshore portfolio in light of the Waitsia gas discovery.
In particular, the company is approaching its 10.1 square kilometre Springy Creek oil prospect – which sits in the northern part of its EP368 Joint Venture (with Energy Resources) some 30km north east of Dongara – with renewed enthusiasm, and is now confident its geological chance of success is 25 per cent.
During July Norwest told the market that Waitsia, located 5km to the west of EP368, had “opened up an exciting new petroleum play within the basin by encountering a very significant hydrocarbon accumulation within the Lower Permian Kingia and High Cliff Sandstone formations”.
“The prospect offers significant potential for sizeable oil accumulations within both the Kingia and the High Cliff Sandstone formations which, based on well intersections in the wider region, are prognosed to incorporate thick, high-quality reservoir sand units at the prospect location at target depths of 2,470 metres and 2,570m respectively,” it said.
The greater Springy Creek structure, encompassing the southern and northern culminations, is an elongate north-south trending three-way dip closure with fault closure to the south.
Reservoirs within this structural feature could be sourced by oil migrating from the proven Kockatea Shale oil kitchen to the south. Furthermore, the prospect is situated within a structural setting comparable to that of the Mt. Horner oil field 15km to the west.
In terms of its Perth Basin offshore activities, Norwest – along with Triangle Energy (Global) – is conducting a 3D seismic survey of its Xanadu oil discovery 300km north of Perth.
Results for this work should available by October.