North Erregulla: EP 368 & EP 426
onshore northern Perth Basin

(Norwest 20%)

North Erregulla joint venture operator Empire Oil & Gas has remapped the seismic data set over the North Erregulla structure. The new interpretation has defined the largest known undrilled fault block structure in the northern Perth Basin. Potential recoverable reserves are estimated at up to 66 million barrels of oil and 300 billion cubic feet of gas.

The North Erregulla-1 well was drilled by WAPET in 1967 and drill stem tests confirmed a live oil system. But this prospect had previously never been properly appraised. Norwest and Empire Oil & Gas have now used FTG and reprocessing of old seismic to remap and evaluate the prospect. The JV is considering recording a 3D seismic survey over the prospect to reduce structural risks before drilling an appraisal well.

Estimated potential recoverable reserves - if the structure is filled to the oil/water contact defined by North Erregulla-1 - are 9 million barrels of oil in the Arranoo Member and 57MMbbl of oil in the Dongara Sandstone. There is also the potential for an estimated 300 billion cubic feet of gas to be trapped in deeper reservoirs of the Irwin River Coal Measures and High Cliff Sandstones.

The North Erregulla oil prospect straddles the boundary of the EP368 and EP426 permits. Norwest holds the EP368 permit while Empire Oil & Gas holds EP426. The bulk of the structure as currently mapped is located in EP368.

Norwest and Empire are undertaking an equity swap that will result in Norwest holding a 20% interest in each of the permits. This unitisation will let the new joint venture explore North Erregulla with one definitive well. Empire will be the operator.