Australia’s Norwest Energy is now a step closer to securing partners for the drilling of the Xanadu well, offshore northern Perth, Australia.
The company, owning a 100 percent stake in the TP/15 block through its subsidiary Westranch, has signed termsheets with Transerv Energy and Triangle Energy, under which both firms can farm-in on the drilling of the Xanadu-1 well.
Under the terms signed, Transerv will contribute 20% of the costs to earn a 15% interest. Triangle will contribute 40% of the costs to earn a 30% interest. According to Norwest, the plan is for the farmout process to be completed by December 31, 2016.
In the meantime, the company said it would continue to work through the regulatory process required to drill the well.
Norwest CEO Shelley Robertson said “We look forward to working closely with both Transerv and Triangle to enhance our understanding of the TP/15 permit, and to drill the Xanadu-1 well. Finalisation of this joint venture and the subsequent drilling of the well will be considered a significant achievement in the current environment, and will represent a major milestone for Norwest shareholders.”
The timing of Xanadu-1 will be dependent upon regulatory approvals and rig availability, however Norwest is currently working closely with rig companies and other operators planning wells in 2017, to ensure the well can be drilled as efficiently and cost-effectively as possible, the company said.