Norwest Energy has formed a strategic alliance with Transerv Energy to facilitate the farmout and drilling of the 160 million barrel Xanadu Prospect located in TP/15, offshore Western Australia.
Exploration Permit TP/15 contains the Xanadu Prospect which lies within a conventional oil play located offshore northern Perth Basin in close proximity to the Cliff Head, Jingemia and Eremia oil fields and the Dongara gas field.
The permit occupies the 3 nautical mile wide state territorial waters offshore Western Australia adjacent to the township of Port Denison and covers an area of 645.8 km2.
According to Norwest’s statement from Monday, both companies have extensive experience operating in the Perth Basin and bring together the skills and resources required to farmout and develop Norwest’s assets.
Transerv said it will work closely with Norwest to finalize the farmout of the Xanadu well during 2016 with the aim that drilling activities take place during 2017.
The alliance also involves the other onshore permits in which NWE has an interest in the Perth Basin.
As part of this alliance, Transerv will acquire, via a share placement, 100 million shares for $200,000 in Norwest at an issue price of $0.002 per share, and have the right to participate in farmout wells in all the Perth Basin permits Norwest has an interest in, on the successful completion of appropriate farmout arrangements.
Transerv noted that Xanadu-1 presents a unique opportunity to drill a relatively low cost offshore play from onshore. Since 2001 this play has resulted in four oilfield discoveries in the vicinity, namely Cliff Head, Jingemia, Hovea and Eremia.
Structurally, the Xanadu Prospect is a prominent horst block lying parallel to the coastline in very shallow water. Transerv said that Xanadu-1 will target Permian sands from a depth of approximately 800 metres. Near-shore sands of the Dongara Sandstone represent the primary target, with secondary targets in the fluvio-deltaic Irwin River Coal Measures and the regressive marine sands of the High Cliff Sandstone.
New CEO for Norwest
Norwest also announced on Monday the appointment of Shelley Robertson as its Chief Executive Officer effective July 11, 2016. Robertson has served as the company’s Asset Manager since joining Norwest in January 2011.
Robertson has over 25 years’ experience in the oil and gas industry, and has postgraduate qualifications in Petroleum Engineering. She has worked throughout Australia for both large and small E&P companies in both technical and management capacities.
The Chairman of Norwest, Michael Fry, commented: “I envisage that with the new Strategic Alliance formed with Transerv Energy, and with Shelley leading the Norwest team, the Company can look forward to an exciting couple of years which will likely include participation in the drilling of three exciting drilling opportunities.”
Offshore Energy Today Staff