The two companies also signed an Area of Mutual Interest (AMI) agreement.
In a statement yesterday Norwest said “Nido has agreed to assign to Norwest a 50% interest for a consideration including reimbursement of certain costs and a carry through the initial two-year evaluation work program to a maximum of A$300,000.
“This agreement paves the way for Norwest’s entry into the North Sea, an area with a first class fiscal regime, very attractive licensing terms under the UK Department of Trade and Industry (DTI) “Promote” licensing initiative and excellent opportunities for small companies to build technical successes”, the company said.
Exploration permits 48/1a & 2b contain a well that encountered 120 metres of gas bearing sandstone and that flowed at up to 2.7 million cubic feet of gas per day when it was drilled in 1984.
Work to date indicates that the well is on the flanks of a substantial structure, and the work program will be designed to fully assess the prospect through reprocessing the available 3D seismic to PSDM and completing a new interpretation.
Under the umbrella of the AMI, Norwest said both companies are already reviewing additional opportunities, and together will appoint an in-country manager to oversee joint projects.
“The AMI provides for joint participation in projects over the next three years in the UK, Dutch, Danish and Norwegian sectors of the North Sea where genuine opportunities for small companies exist, without restricting either company’s ability to undertake business. In the initial stages Norwest and Nido will focus on the Southern Gas Basin, and will work to identify other strategic areas to produce new core operating areas.”