Norwest's float for Timor exploration<\/p>\n
SYDNEY (Reuter): Oil and gas hopeful Norwest Energy NL
\nlaunched a float yesterday to raise A$15 million to explore five
\nprospects in the Timor Sea and Northern Territory.<\/p>\n
Norwest said it would offer 75 million or 80 percent of its
\nshares at 20 cents each and use the funds to spend A$13 million
\nto drill five wells in its first two years and conduct a seismic
\nsurvey.<\/p>\n
Norwest chief executive Ivan Burgess told a media briefing
\nthat the offer was not underwritten, but that broker BZW
\nAustralia had offered to take up as much as A$7.5 million of the
\nissue.<\/p>\n
Norwest is the operator and owns a third of the Timor Gap Zone
\nof Cooperation (ZOCA) 96-16 production sharing contract, which is
\n25 km north-east of the huge Bayu-Undan gas condensate field and
\n10 km north-east of the Elang Kakatua and North Katatua oil
\nfields.<\/p>\n
\"At least 12 leads and prospects have been identified with at
\nleast one having potential to contain in excess of 100 million
\nbarrels of recoverable oil,\" it said in its prospectus.<\/p>\n
Norwest also owns 10 percent of the nearby WA74-P permit,
\nwhere drilling is due to start on the Schilling well in the
\nBonaparte Basin at the end of this month.<\/p>\n
Petroz NL is the operator and has half of the Schilling 1
\nwell. The Schilling prospect has potential oil reserves of up to
\n50 million barrels of oil, Norwest said.<\/p>\n
Norwest also has a 50 percent interest in the AC\/P22 permit in
\nthe Ashmore Cartier region in the Timor Sea which contains the
\nPuffin oil field.<\/p>\n
The field, where a well has flowed 4,608 barrels per day on
\ntest, has potential to contain up to 50 million barrels of oil,
\nit said.<\/p>\n
Norwest said it also had a 49 percent interest in the EP-75
\narea located onshore in the Northern Territory.<\/p>\n
The Providence Hill prospect in the area has the potential to
\ncontain 80 million barrels of oil, it said.<\/p>\n
The offer opens on August 14, closes on September 3 and is
\nexpected to list soon after.<\/p>\n
Chairman David Kennedy will retain a 20 percent shareholding
\nin Norwest.<\/p>\n
Burgess said a national broking firm had also offered to be
\nthe lead manager for the float.<\/p>\n
The prospectus has measured the net asset backing of the
\nshares at 19 cents per share.<\/p>\n
After adjusting for an independent valuation of the petroleum
\nassets to be acquired, the net asset backing is seen in a range
\nof 18 cents to 26 cents per share.<\/p>\n
Any surplus cash generated by the company would applied to
\nexpanding Norwest's production base, rather than distributed as
\ndividends.<\/p>\n
\"The aim is to have production within the next two years to
\nensure the company keeps expanding,\" Burgess said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/norwests-float-for-timor-exploration-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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