Norwest Energy NL announced that the company is currently in the process of conducting an evaluation program on the EP413 permit in the Northern Perth Basin.

The Arrowsmith 2 well was successfully drilled in June 2011 as a proof of concept well to assess the shale gas / tight gas potential of the permit area. In order to complete this assessment, Norwest will be running a hydraulic fracture stimulation program on this well.

However due to a third party referral of this program to the Environmental Protection Authority, the start date for the hydraulic stimulation program of Arrowsmith 2 has been deferred. Norwest was planning to commence the stimulation program on 1st September, however must now wait until the EPA has made a decision on whether or not to carry out an assessment of the program. Final approval is to be provided by the Department of Mines and Petroleum and Norwest is confident that all supporting documentation required by the DMP will demonstrate full compliance to all necessary regulations and guidelines. At this time it is unclear how long this overall process will take, however it could be three months or more before it is concluded.