Norwest Energy NL advises that Arrowsmith-2 exploration well has reached Total Depth at 3340 metres.

Both the gas log and logging while drilling showed encouraging gas responses in the top of the High Cliff Sandstone conventional gas objective. The gas responses below the High Cliff reservoir into the deeper Holmwood member were less encouraging suggesting that it was unlikely to encounter commercial hydrocarbons below this depth, accordingly it was decided to call total depth at 3340 metres.

Arrowsmith-2 has so far successfully achieved its objectives of

1. Cutting two cores from the unconventional shale gas sequences, the Carynginia Formation and the Irwin River Coal Measures, and
2. Identifying the potential for conventional gas of the High Cliff Sandstone in the Arrowsmith -2 immediate area.

The comprehensive wireline logging suite that is due to commence in the next few days will provide more data to validate the gas responses of the LWD in the High Cliff Sandstone. It will also provide more comprehensive gas data in the Kockatea, Carynginia and Irwin River Coal Measure shale formations that also showed good gas backgrounds in the LWD, however the presence of gas backgrounds in shales must be viewed with caution as the gas in the tight shale formations will not flow without stimulation, which is a major section of the overall shale gas evaluation program and will occur during September.

The immediate forward program is to record a comprehensive wireline logging suite in the open hole section which extends from 2,284 metres down to TD. Rotary side wall cores will then be cut at different stratigraphic levels throughout the open hole section. It is anticipated that the rotary side wall coring and logging activities will be completed early next week and the core results will be received towards the end of August. It is planned to re-enter the well during September for fracture stimulation and subsequent flow testing in order to fully assess the productive capacity of the potential reservoir zones.

The objective of the well evaluation program is the full assessment on the viability of several formations identified for their potential hydrocarbon content. The primary objective is to test the shale gas potential of both the Carynginia Formation and the Irwin River Coal Measures, whereas the secondary objective is to test both the shale gas/condensate potential of the lower Kockatea Shale and the additional possibility of a conventional gas play within the High Cliff Sandstones.