Norwest Energy NL

ASX:NWE
Deleted on 2023-05-17 00:30:04

Norwest Energy NL

ASX:NWE
Deleted on 2023-05-17 00:30:04
$0.056 (0%)
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Forum Topics NWE NWE You win Ellison
Longpar5
one year ago

I sold my shares yesterday at 7c, thought I should update. The improved offer and board acceptance pushed me towards the exit. Its a shame the board didn't hold out for more. I can't see another bidder emerging. What really tipped me over was Beach writing down 11% of their 2p reserves in Waitsia. Was a good reminder that sometimes the more you know the worse it gets and while lockyer deep could be worth more than what min res are paying, it could be worth a lot less too if the down dip well is wet (as per what Beach must have found). I also have pure Perth basin exposure via strike, so was comfortable taking about half my position off the table.

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Longpar5
one year ago

Replying to myself......echo.....echo..

Anyway for the record lockyer 2 has come in wet. Stepping out 3.2km, 300m downdip all on 2d seismic is risky business and so it has proved.

NWE released a more informative summary than MIN but the details are still pretty scant. My inference is they had interpreted a significant gas column based on pressure data in lockyer 1. This would have leveraged an assumption on the regional aquifer pressure which they have got badly wrong due to some complex geology (eg faulting) between lockyer and wherever they were sourced their assumption on aquifer pressure. The nature of exploration and appraisal in a relatively new basin. They went down to appraise this column and it wasn't there. NWE reckons lockyer is left with a 11km2 areal footprint, I estimate MIN paid up for about 50km2 or more, so we got a good deal in the end!

The head of MINs energy division has left the business "coincidentally", especially given they've just paid up to purchase her former company NWE on the basis of a better result than this.

For those holding i don't think the result impacts the chance of success at the upcoming NED-1, however probably downgrades the expected size of any discovery.

9