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    Norwest Raises Funds for West Oz Drilling

Summary

The proceeds of the placement will be used to cover the company's 20% share of drilling costs at the Lockyer Deep-1 exploration well.

by: Shardul Sharma

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Norwest Raises Funds for West Oz Drilling

Sydney-listed Norwest Energy has raised A$2mn (US$1.5mn) through a placement of shares to fund exploration activities in Western Australia’s Perth basin, it said on January 19. 

The capital raised will be used to cover the company's 20% share of drilling costs at the Lockyer Deep-1 exploration well, located in Perth Basin exploration permit EP 368, the company said. The funds will also be used for planning and preparation for a 3D seismic survey across EP368 and EP426, desktop studies at TP/15, and general working capital.  

“The company is now in an excellent financial position as we prepare to drill the Lockyer Deep gas prospect, which comes on the back of three very significant and valuable Permian discoveries,” company managing director Iain Smith said. “While discussions regarding timing of a rig slot continue, we remain optimistic of drilling during H1 2021." 

The Lockyer Deep-1 well will test a three-way dip structure at the Kingia and High Cliff levels within the Permian gas play's "sweet spot" and on trend with three significant recent gas discoveries, Norwest said.