Norwest hits jackpot with Puffin royalty

PERTH-based minnow Norwest Energy estimates it could earn $A33 million in cash flow as a result of its 1.25% royalty holder in AED Oil’s Puffin oil field in the Timor Sea.
Norwest hits jackpot with Puffin royalty Norwest hits jackpot with Puffin royalty Norwest hits jackpot with Puffin royalty Norwest hits jackpot with Puffin royalty Norwest hits jackpot with Puffin royalty

In its December quarterly report, the company said it based this figure on the release of AED’s reserve upgrade at the P50 level of confidence in November and an average oil price of $US50 per barrel.

AED estimates the Puffin North East main area (NE1) contains 22 million barrels (MMbbl) at the P90 (90%) level of confidence, 40MMbbl at P50 and 67MMbbl at Pl0.

“In addition, AED believes the NE2 area is likely to be a commercial pool and considers the NE3 area to be an exciting prospect,” Norwest said.

Also in the Vulcan Sub-basin, Norwest has nearly finalised a farm-out agreement with an Indian energy major in AC/P32, where operator Coogee Resources drilled the unsuccessful Magnolia-1 exploration well this time last year.

While Norwest yesterday referred to the farm-in partner as a “third party”, earlier this month it named the company as Bharat Petroleum in response to speculation by Indian news reports.

The AC/P32 joint venture has also nearly finished interpreting its recently purchased 3D seismic dataset, which covers the entire block, and the results of which will determine the location of a commitment well.

Norwest said entry into the permit year starting May was optional for each of the JV partners, who are Australian Worldwide Exploration, Bounty Oil and Gas and Adelphi Energy.

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