News

November 04, 2009

With Puffin Grounded, Norwest Energy Turns Its Attention To Western Australia And Southern England

By Stewart Dalby

The summer months proved a bumpy ride for shareholders in Norwest Energy after the ASX-listed company announced the shut-in of the Puffin oilfield in the AC/P22 permit in the Timor Sea. The field’s operator AED Oil issued a breach notice to the owner of the Front Puffin FPSO in June following concerns about operating and performance issues. More than three months on and the field, in which Norwest has a 1.25 per cent royalty interest, remains shut-in.

This is problematic for Norwest. Although it only has a small royalty interest in the field, which came onstream in 2007 and had suffered some production problems during 2008, the revenue stream was a financial lifeline for the ASX firm, generating over A$1 million in royalties in 2008/09. Norwest does have a second income stream, from a 1.278 per cent interest in the Jingemia oilfield in the northern Perth Basin, where last month the J12 production well was brought onstream, adding...