Norwest Energy makes oil discovery at Xanadu

Sept. 18, 2017
Norwest Energy Ltd., Perth, has made and oil discovery in its shallow-water Xanadu-1 wildcat drilled in the north Perth basin offshore Western Australia.

Norwest Energy Ltd., Perth, has made and oil discovery in its shallow-water Xanadu-1 wildcat drilled in the north Perth basin offshore Western Australia.

The well, in inshore permit TP/15 about 40 km south of Dongara, has been drilled at an angle from an onshore coastal location.

Norwest reported that Xanadu-1 intersected hydrocarbon-bearing reservoirs highlighted by elevated gas readings, oil shows, and fluorescence during drilling. The company cautioned that the significance of the find won’t be known until a suite of wireline logs are run that includes pressure testing and fluid sampling.

The company, nonetheless, is encouraged enough to bring in a 7-in. casing string in preparation for a short well test if log results are positive. The well will then be cased and suspended pending an extended well test once approvals have been obtained.

The drilling data so far indicates similarities to those of the Cliff Head-1 oil discovery well further offshore. Norwest and its joint venture partners decided to extend drilling 300 m beyond the base of the High Cliff sandstone reservoir to include the deeper sandstones of the Holmwood shale and provide a complete geological picture down to basement (OGJ Online, July 11, 2016).

The play type is the same as that of the offshore Cliff Head oil field as well as nearby onshore Hovea, Eremia, and Jingemia fields.

The well is being evaluated with an unrisked, prospective recoverable resource of as much as 160 million bbl of oil.

Xanadu-1 is on the eastern part of the structure closest to shore. Future drilling in the large feature will move further west into deeper water farther offshore and will require a jack up rig.

If the test program is successful, the Xanadu discovery will be fast-tracked into development through partner Triangle Energy’s Arrowhead production facility.

Norwest has a 25% interest and operatorship. Other partners include Triangle (Global) Energy Ltd. 30%, Whitebark Energy Ltd. 15%, and 3C Group IC Ltd. 30%.