Norwest Energy NL reports that following the decision to plug and abandon Red Hill South it remains positive about its future exploration activities in the Northern Perth Basin.

TP15
Whilst Red Hill South did not deliver sufficient hydrocarbons to be commercial, it was nonetheless a technical success, the results of which will contribute to the greater knowledge and understanding of the other prospects within TP15 that have the potential for over 350MMbbl Oil In Place and Xanadu prospects. Once Norwest has fully evaluated the results of Red Hill South it will review all of the TP15 prospects which it considers will result in improved prospectivity.

EP413 Shale Gas Evaluation
Norwest’s immediate focus will now be on the shale gas potential of EP413 and in particular the Arrowsmith #2 well that is planned to be drilled in mid May 2011 to evaluate the shale gas potential of EP413. The target in EP413 is the three shale sequences, the Kockatea, the Carynginia and the Irwin River Coal Measures. Arrowsmith #1 was drilled in the sixties and flowed gas at 4MMcf/d from the Caryinginia. Arrowsmith #2 will be the first dedicated shale gas well to be drilled in the Northern Perth Basin and Norwest has high expectations for the success of the well.