🕐23.06.11 - 02:27 Uhr

NORWEST ENERGY [ASX: NWE] - ARROWSMITH-2 DRILLING UPDATE #6





Fortbridge Media Release

Norwest Energy [ASX: NWE] - Arrowsmith-2 Drilling Update #6

Norwest Energy NL (ASX: NWE) advises that the Arrowsmith-2 exploration well (EP413 North Perth Basin) has been completed, with the Weatherford 826 rig presently rigging down in preparation for demobilisation.

Key points:
* Arrowsmith -2 shale gas exploration well successfully achieves all planned formation evaluation objectives for the drilling phase of the project
* Project now to advance to fracture stimulation and flow testing in September

All of the Arrowsmith-2 exploration well planned formation evaluation objectives for this phase of the project have been successfully achieved including:
- 100m of core taken from the Carynginia (55m) and Irwin River Coal Measures (45m) with 100% recovery;
- Rotary sidewall cores taken from additional zones of interest including the Kockatea, Carynginia, Irwin River Coal Measures and the High Cliff sandstone formation;
- A comprehensive wireline logging program run from the bottom of the High Cliff Sandstone at 3301m, up to the 244mm (9-5/8�) casing shoe at 2281m; and
- Identifying the potential for a conventional gas play within the High Cliff sandstone formation.

These recent operations have advanced the project considerably towards its ultimate objective, which is to hydraulically fracture stimulate and flow test the shale formations and also flow test the High Cliff Sandstones. Once this phase is complete, the commercial viability of these shale / tight gas plays will be assessed.

The successful recovery of all cores and completion of the comprehensive wireline logging suite is an important milestone as the results and interpretation of these processes will assist in determining the final design of the stimulation program scheduled for September 2011.

Norwest Energy Chief Executive Officer Peter Munachen said �We are more than pleased with the overall achievements to date and in particular the performance of the drilling and operations team to complete all well objectives within the original timeframe. Of greater importance are the encouraging gas responses from the wireline logging program. Interpretation is ongoing and the complete results will not be known for some time yet, however so far so good.

In addition to the shale objectives are the positive indications from the High Cliff Sandstones for conventional gas potential. The 100% recovery of the cores was a major achievement and will be a determining factor in establishing the characteristics of the shale to produce gas. Norwest�s technical team has inspected the cores and a preliminary test conducted on a limited core section showed gas releasing from the core. Encouraging, but even so we still have to wait patiently until late August to know the conclusive answer before we head into the ultimate test, to stimulate and flow test the formations.�

Mr Munachen concluded �At this stage Norwest is highly encouraged by the achievements and indicators to date however the flow test will be the ultimate decider.�

Please find more details in the attached announcement.

For further information, please contact:

Peter Munachen
Norwest Energy
Tel: +61 8 9227 3240
Email:

Media and Investor Enquiries:
Fortbridge Consulting
Tel: +61 2 9331 0655
Peter-John Lewis +61 (0) 416 290 604




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