A preliminary review by Norwest Energy of the airborne FTG survey results (Full Tensor Gradiometry) has confirmed the structural integrity of Xanadu and Redhill South prospects and as prime targets for drilling in the 2010 drilling season. The two targets – Xanadu and Redhill South – are in an underexplored northern Perth Basin permit, TP/15 (Norwest 100%).

Highlights: • Advanced survey technology unlocks overlooked oil prospects • Xanadu and Redhill South structures confirmed as prime targets for 2010 drilling season

The company plans to drill at least one, and possibly both, of these targets during 2010 and is now focused on progressing both the drilling and farm-out processes. Importantly, both wells can be drilled from onshore sites using deviated drilling techniques.

Following the preliminary review of the FTG survey, Norwest now has enough information to confidently work on identifying and securing a suitable drill rig, and to begin the planning and permitting processes for drilling either Xanadu or Redhill South, or both prospects. In parallel, the company will further evaluate data from the FTG survey in conjunction with other data in order to mitigate risk and determine the optimum drill sites.

Tags: Norwest Energy NL