The company found dominant gas zones in the Carynginia formation and the Irwin River coal measures.
Production logging tested the flow conditions during the well test, finding these two targets as the best for gas production.
The zones previously flowed gas to surface at a rate of 312,299 cubic feet per day, but the production test was able to hone in on flow rates from each zone.
With two targets now having been sized up with the potential to produce significant amounts of hydrocarbons, the target zone and location of the Arrowsmith-3 will be finalised.
A 3D seismic programme planned for the fourth quarter will also factor into the drilling decision.
Norwest chief executive Peter Munachen said final test work on the Arrowsmith-2 had validated...
