Xanadu-1 discovery’s crude oil similar to Cliff Head field

Analysis has shown that crude oil from Perth-based Norwest Energy Ltd. group’s Xanadu-1 discovery in the north Perth basin is of good quality and similar to that produced from Cliff Head oil field further offshore.

Analysis has shown that crude oil from Perth-based Norwest Energy Ltd. group’s Xanadu-1 discovery in the north Perth basin is of good quality and similar to that produced from Cliff Head oil field further offshore.

First phase analysis of recovered samples indicates the oil is 34.7° gravity with no hydrogen sulfide and extremely low levels of carbon dioxide.

Because of its close match to Cliff Head, the combine expects it will attract similar pricing in the marketplace. The low level of impurities will enable the company to consider lower-cost, efficient development options.

The discovery is in onshore permit TP/15 about 40 km south of Dongara. Xanadu-1 was drilled as a directional well from land into the offshore location. Initial findings indicate there is potential for oil to be found both updip and downdip in the structure from the Xanadu-1 location.

Norwest Energy is studying all available reservoir, pressure, and fluid data to update the predrill structure and better estimate the volume of oil in situ. The similarity of oil characteristics at Xanadu and Cliff Head suggest that oil from both fields may have migrated from the same source. The joint venture says this increases the likelihood that other structures in the region may also have trapped oil.

Looking ahead, the combine is preparing a work program for first half 2018 aiming at a high-impact, low-cost schedule of activities. A substantial component will be put towards oil appraisal and exploration.

The program will include petrophysics, geomechanics, and reservoir engineering studies; plans for a 3D survey over the Xanadu structure; plans for a side-track well from the Xanadu-1 location, and ongoing studies of other prospects in the TP/15 permit.

Partners include Norwest Energy 25%, Triangle (Global) Energy Ltd. 30%, Whitebark Energy Ltd. 15%, and 3C Group IC Ltd. 30%.

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