Norwest Energy NL : MinRes approved for Perth Basin appraisals in search of $1 GJ gas – ENB

MinRes approved for Perth Basin appraisals in search of $1/GJ gas

MINERAL Resources has been approved for its three well Perth Basin drilling plan

as a follow up to their successful Lockyer Deep-1 wildcat.

Two follow ups to Lockyer Deep-1 (pictured) and an exploration well

It was drilled by MinRes energy subsidiary Energy Resources and Norwest Energy just over a year ago and reported one of the largest gas columns seen in an already prolific area. Flow testing this year recorded a huge 130 million cubic feet of gas per day from the conventional well.

Now the partners plan to drill appraisals Lockyer-2 and -3 and the North Erregulla Deep- 1 exploration well. All will target the Kingia sandstone. Secondary targets for these wells include the High Cliff, Dongara / Wagina and Arranoo sandstones.

Mineral Resources founder and managing director Chris Ellison said in August he planned to spend $100 million on drilling this year and ultimately use gas to power mining operations and battery manufacturing for the next 40 to 50 years.

Lockyer-2 will be 3.2 kilometres east-northeast of its predecessor and Lockyer-3 4.38kmnorthwest of Lockyer Deep-1.North Erregulla will be 8.3km southeast of Lockyer Deep- 1.

Drilling will take 56 to 65 days per well and is expected to begin in the last quarter of thisyear. Lockyer-3is targeted for drilling in the third quarter of next year.

The wells will be drilled in cleared paddocks, except for a small eucalyptus grove close to one proposed well pad.

Aztech Well Services have been contracted.

Ellison said Lockyer represented the "largest onshore gas discovery sitting up in the Perth Basin" and outlined plans for a gas plant by 2024 that would supply power to its huge Wodgina lithium project, something he first looked at in 2017 when he made a takeover bid for Perth Basin player AWE.

He was ultimately beaten by Mitsui, which will export Waitsia stage 2 gas as LNG via theNorth West Shelf.

"So the Perth Basin is probably the most unexplored and the most prospective region in Australia for gas," he said.

"So we got -- we're the largest holder in that region and also in the Carnarvon Basin andso that's sort of the business in a nutshell

"I mean, we'll have gas. It's probably going to cost us about $1 a gigajoule.