Confirmed Oil Discovery

Norwest Energy has provided an update on the Xanadu-1 well indicating there is significant potential at Xanadu, and Norwest as Operator will continue to manage the evaluation program in a thorough and diligent manner. As shareholders in Norwest Energy, this is exciting news!

HIGHLIGHTS

• First phase of crude oil analyses now complete
• Initial results confirm similarities with crude produced at the Cliff Head Oil Field
• Formulating forward work program
• JV anticipates active 1H 2018 program towards defining the size of the Xanadu-1 discovery

CONFIRMED OIL DISCOVERY

The Xanadu-1 exploration well is a confirmed oil discovery. The first phase analysis of the oil recovered from Xanadu-1 samples has now been completed with the initial analyses showing a yield of 34.7o API crude oil with no H2s and extremely low levels of CO2 (0.02%). The Xanadu crude is similar to that produced at Cliff Head Oil Field and, upon development, is expected to receive similar pricing in the market. The minimal levels of CO2 and no H2S characteristics of the crude oil enable the use of lower-cost, schedule efficient development options. 

FORWARD WORK PLAN
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Following the results of the first phase analysis of Xanadu-1 data, Norwest Energy commenced integrating all available data to estimate the range of total crude-oil in the Xanadu structure. Key initial findings indicate that in addition to the potential of the up-dip structure previously announced, there is now evidence that “down” structure volumes are also present within the currently mapped Xanadu prospect. All available reservoir, pressure and fluid data is being utilized to update the pre-drill structure and better estimate the in-place volumes of oil.

Read the full ASX Announcement here.