GAS

Norwest and Alto start drilling at new West Virginia project

PERTH-based juniors Norwest Energy and Alto Energy says their US-based partner Ascent Resources h...

With a planned depth of 1158m, the well will target gas from the Devonian Shale section, Norwest said. Three cores will be taken for detailed analysis from the first well.

The program’s first four well locations are close to existing gas pipelines, providing an opportunity for them to be tied into the system and to generate early cash flow, the company said.

Once drilled, the wells will be fracced and completed at a later date.

Under a farm-in agreement, Ascent will pay Norwest and Alto Energy’s share of costs to drill and complete the first three wells.

Norwest managing director Joe Salomon said Ascent was looking to introduce techniques and technology to optimise the gas potential within the Devonian shale section.

“Gas has been produced from this shale section in the region for over a hundred years, however, as demonstrated in other shale gas projects in the US, it can take a concerted effort to maximise production rates,” Salomon said.

“The shale is at a greater depth than Norwest’s other projects in Tennessee and Kentucky and as a result is expected to have higher reservoir pressures and flow rate potential.”

Salomon added that Norwest and its partners have acquired about 38,000 acres in three West Virginia counties over the last 14 months.

The Cornstalk joint venture comprises Ascent Energy (project operator – 42%), Norwest Appalachians (29%) and Alto Energy (29%).

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