http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Sat, 23 Jun 2018 18:34:14 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Carnarvon Petroleum’s Dorado-1 well approaches gas and condensate target on North West Shelf ]]> http://www.proactiveinvestors.com.au/companies/news/199364/carnarvon-petroleums-dorado-1-well-approaches-gas-and-condensate-target-on-north-west-shelf-199364.html Carnarvon Petroleum Limited’s (ASX:CVN) drilling operations at the Dorado-1 well of the Phoenix project offshore Western Australia are at a measured depth of about 3,637 metres.

The well is now approaching the target of the Dorado structure at the Caley interval, which is expected to be intersected at a depth of around 3,800 metres.

Second well at Phoenix project

It is the second well being drilled by Carnarvon and project operator Quadrant Energy seeking gas and condensate at the Phoenix project.

As the hole gets deeper, drill casings get narrower and the 12-1/4 inch casing size was completed at 3,637 metres.

The plan is to run and cement the 9-5/8 inch liner then drill the 8-1/2 inch into the primary Caley Member target.

Location of the Dorado-1 well within the Phoenix project.

Assessing gas and liquids

Carnarvon’s primary objective for this well is to assess the gas and liquids potential in the Caley Member.

The well is less than 20 kilometres from and up-dip of the successful Roc-1 and Roc-2 wells.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 billion cubic feet of gas and 30 million barrels of associated condensate.

This is equal to 125 million barrels of oil equivalent, gross, Pmean.

A seismic line showing the incised Dorado Canyon with the red line showing the top Caley Member.

Multiple secondary targets have been identified by Carnarvon in the Crispin and Milne Members and these will also be assessed by the Dorado-1 exploration well.

READ: Carnarvon Petroleum down to 4,634 metres at Phoenix South-3 well

Drilling by Quadrant of the first well at the project, Phoenix South-3, last week reached 4,634 metres measured depth.

It is also targeting the Caley Member and a closure estimated to contain a gross mean recoverable prospective resource of 143 million barrels of oil equivalent.

This well is within a large, faulted anti-clinal closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

READ: Carnarvon Petroleum cashed up to progress multiple oil, gas opportunities

Carnarvon recently completed a $20 million capital raising, which has strengthened its total cash position to $65 million.

These funds will enable the company to pursue drilling of the Buffalo-10 well, also on the North West Shelf, with the maximum equity possible.

This well is in the territorial waters of Timor Leste in the northeast of the North West Shelf.

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Fri, 22 Jun 2018 13:44:00 +1000 http://www.proactiveinvestors.com.au/companies/news/199364/carnarvon-petroleums-dorado-1-well-approaches-gas-and-condensate-target-on-north-west-shelf-199364.html
<![CDATA[News - Carnarvon Petroleum at 1,250 metres depth for the Dorado-1 well ]]> http://www.proactiveinvestors.com.au/companies/news/198912/carnarvon-petroleum-at-1250-metres-depth-for-the-dorado-1-well-198912.html Carnarvon Petroleum Ltd (ASX:CVN) has drilled down to 1,250 metres measured depth in its Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

As the hole gets deeper, the drill casings get narrower, the current casing size aims to take the hole to 3,600 metres depth before a smaller casing is set.

Drilling is targeting the Caley Member interval which is expected to be intersected at a depth of about 3,800 metres measured depth.

READ: Carnarvon Petroleum commences drilling Dorado-1 well

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval.

The well is less than 20 kilometres from and updip of the successful Roc-1 and Roc-2 wells.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 billion cubic feet of gas and 30 million barrels of associated condensate.

This equals 125 million barrels of oil equivalent, gross, Pmean.

READ: Carnarvon Petroleum down to 4,634 metres at Phoenix South-3 well

Drillong of the Phoenix South-3 well at the nearby Phoenix project is also underway and yesterday and update revealed it was at 4,634 metres measured depth.

It is also targeting the Caley Member and a closure that is estimated by Carnarvon to contain a gross mean recoverable prospective resource of 143 million barrels of oil equivalent.

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Fri, 15 Jun 2018 13:49:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198912/carnarvon-petroleum-at-1250-metres-depth-for-the-dorado-1-well-198912.html
<![CDATA[News - Carnarvon Petroleum down to 4,634 metres at Phoenix South-3 well ]]> http://www.proactiveinvestors.com.au/companies/news/198832/carnarvon-petroleum-down-to-4634-metres-at-phoenix-south-3-well-198832.html Carnarvon Petroleum Ltd (ASX:CVN) has noted that drilling operations are at 4,634 metres measured depth at the Phoenix South-3 offshore well.

The well is the first drilled by Carnarvon and project operator Quadrant Energy at the Phoenix project offshore Western Australia seeking gas and condensate.

It is targeting a closure that is estimated by Carnarvon to contain a gross mean recoverable prospective resource of 143 million barrels of oil equivalent.

Evaluating the Caley Member section

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member section.

It is within a large, faulted anti-clinal closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

READ: Carnarvon Petroleum commences drilling Dorado-1 well

Earlier this month Carnarvon commenced drilling the Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval by drilling down about 1,175 metres.

The well is less than 20 kilometres from and updip of the successful Roc-1 and Roc-2 wells.

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Thu, 14 Jun 2018 14:55:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198832/carnarvon-petroleum-down-to-4634-metres-at-phoenix-south-3-well-198832.html
<![CDATA[News - Carnarvon Petroleum cashed up to progress multiple oil, gas opportunities ]]> http://www.proactiveinvestors.com.au/companies/news/198410/carnarvon-petroleum-cashed-up-to-progress-multiple-oil-gas-opportunities-198410.html Carnarvon Petroleum Limited (ASX:CVN) recently completed a $20 million capital raising and has strengthened its total cash position to $65 million.

The funds were raised to enable the company to pursue drilling of the Buffalo-10 well with the maximum equity possible and to progress activity across other Carnarvon permits.

The Buffalo oil field is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste and the field will be completely within Timor-Leste’s jurisdiction.

Plans to drill in 2019

Carnarvon’s plan is to drill the Buffalo-10 well in 2019 then move to oil production around 18 to 30 months later.

The project is expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at over US$2.3 billion.

Notably, with an expected development cost of less than $150 million and a simple low cost floating production system, the project is expected to have a high profit margin.

READ: Carnarvon Petroleum commences drilling Dorado-1 well

Earlier this week, the company commenced drilling the Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval by drilling to a depth of about 1,175 metres.

The Dorado structure at the Caley interval is estimated to contain prospective resources of gas and associated condensate equivalent to 125 million barrels of oil.

Meanwhile, the company’s current two Phoenix project wells are seeking to confirm commercial viability after having successfully proved the existence of a working petroleum system from the first four wells.

READ: Carnarvon Petroleum’s well reaches 4,619 metres targeting gas and condensate on North West Shelf

The Phoenix wells are on the North West Shelf offshore Western Australia.

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Thu, 07 Jun 2018 12:37:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198410/carnarvon-petroleum-cashed-up-to-progress-multiple-oil-gas-opportunities-198410.html
<![CDATA[News - Carnarvon Petroleum commences drilling Dorado-1 well ]]> http://www.proactiveinvestors.com.au/companies/news/198229/carnarvon-petroleum-commences-drilling-dorado-1-well-198229.html Carnarvon Petroleum Ltd (ASX:CVN) has commenced drilling the Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval by drilling down about 1,175 metres.

The well is less than 20 kilometres from and updip of the successful Roc-1 and Roc-2 wells.

Targeting 125 million barrels of oil equivalent

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 billion cubic feet of gas and 30 million barrels of associated condensate.

This equals 125 million barrels of oil equivalent, gross, Pmean.

Other targets to also be drilled

Multiple secondary targets have been identified by Carnarvon in the Crispin and Milne Members and these will also be assessed by the Dorado-1 exploration well.

READ: Carnarvon Petroleum’s well reaches 4,619 metres targeting gas and condensate on North West Shelf

Last week, Carnarvon drilled the Phoenix South-3 well in the same project to a measured depth of 4,619 metres.

The well was the first drilled by Carnarvon and project operator Quadrant Energy at the Phoenix project offshore Western Australia seeking gas and condensate.

This well was also targeting the Caley Member at a depth of about 5,360 metres.

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Tue, 05 Jun 2018 12:49:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198229/carnarvon-petroleum-commences-drilling-dorado-1-well-198229.html
<![CDATA[News - Carnarvon Petroleum pockets additional cash from share purchase plan ]]> http://www.proactiveinvestors.com.au/companies/news/198139/carnarvon-petroleum-pockets-additional-cash-from-share-purchase-plan-198139.html Carnarvon Petroleum Ltd (ASX:CVN) has added to its cash position after raising $4 million via a share purchase plan, bringing the total of the recent raising to $20 million.

The shares will be allotted on Wednesday 6 June 2018.

The raising was priced at 13 cents, with Carnarvon last trading at 14 cents.

READ: Carnarvon Petroleum about to set-up Dorado-1 well targeting gas and liquids

Carnarvon remains focused the commercialisation of high value projects on the North West Shelf of Australia.

WATCH: Carnarvon Petroleum set to "bring forward the next phases of value for shareholders" ]]>
Mon, 04 Jun 2018 11:05:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198139/carnarvon-petroleum-pockets-additional-cash-from-share-purchase-plan-198139.html
<![CDATA[News - Carnarvon Petroleum’s well reaches 4,619 metres targeting gas and condensate on North West Shelf ]]> http://www.proactiveinvestors.com.au/companies/news/197973/carnarvon-petroleums-well-reaches-4619-metres-targeting-gas-and-condensate-on-north-west-shelf-197973.html Carnarvon Petroleum Limited (ASX:CVN) has drilled the Phoenix South-3 well on the North West Shelf to a measured depth of 4,619 metres and is preparing to run the 11-3/4 inch liner.

The well is the first drilled by Carnarvon and project operator Quadrant Energy at the Phoenix project offshore Western Australia seeking gas and condensate.

Using a semi-sub rig, this drilling is targeting the Caley Member at a depth of about 5,360 metres and this is also the target of a second well being prepared at nearby Dorado-1.

READ: Carnarvon Petroleum’s drilling on track to reach primary gas target

Shares are up almost 8% to 14 cents.

At Phoenix South-3 the 12-1/4 inch hole section has been completed to 4,619 metres with the hole being prepared for the 11-3/4 inch liner.

Quadrant will then drill the 10-5/8 inch hole to about 5,160 metres measured depth.

A 9-5/8 casing will then be set before the 8-1/2 inch hole section is drilled to the top of the primary Caley Member section.

Objective to assess Caley Member

The primary objective for this well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted anti-clinal closure partially penetrated with the previous Phoenix South-2 well.

This well encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

Designed to evaluate formations

Phoenix South-3 has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

The well is targeting a closure that is estimated to contain a prospective resource of gas and associated condensate equivalent to 143 million barrels of oil.

It is around 560 metres north-northeast of Phoenix South-2.

READ: Carnarvon Petroleum about to set-up Dorado-1 well targeting gas and liquids

At the Dorado-1 well site, an Ensco-107 jack-up drilling rig is on site and being prepared for drilling.

Dorado is considered a probable gas prospect with significant associated condensate.

There is also the possibility for the structure to contain a substantial oil accumulation.

The Dorado structure at the Caley interval is estimated to contain a prospective gas and condensate resource equivalent to 125 million barrels of oil.

Multiple secondary targets have been identified in the Crispin and Milne members, and these will also be assessed by the Dorado-1 exploration well.

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Thu, 31 May 2018 13:35:00 +1000 http://www.proactiveinvestors.com.au/companies/news/197973/carnarvon-petroleums-well-reaches-4619-metres-targeting-gas-and-condensate-on-north-west-shelf-197973.html
<![CDATA[News - Carnarvon Petroleum’s drilling on track to reach primary gas target ]]> http://www.proactiveinvestors.com.au/companies/news/197761/carnarvon-petroleums-drilling-on-track-to-reach-primary-gas-target-197761.html Carnarvon Petroleum Limited (ASX:CVN) is continuing to progress the drilling of the Phoenix South-3 rig and is currently drilling ahead at 4,352 metres measured depth.

Importantly, the Caley primary target is expected to be intersected at a depth of about 5,360 metres.

The Phoenix South-3 well is on the prolific North West Shelf, off the coast of Western Australia.

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted closure that was partially penetrated with the Phoenix South-2 well.

Carnarvon’s well will target a closure that is estimated to contain a prospective resource of gas and associated condensate equivalent to 143 million barrels of oil.

READ: Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field

Earlier this month, Carnarvon raised $16 million in a placement to facilitate the redevelopment of the Buffalo oil field on the North West Shelf.

Buffalo-10 will be positioned to test new oil in the attic accumulation as well as drill deeper into the oil pool in the field’s previously developed portion.

Expected timing for drilling to start on the first well is between March and September 2019, after the end of the cyclone season.

Notably, the wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

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Mon, 28 May 2018 13:32:00 +1000 http://www.proactiveinvestors.com.au/companies/news/197761/carnarvon-petroleums-drilling-on-track-to-reach-primary-gas-target-197761.html
<![CDATA[Media files - Carnarvon Petroleum set to "bring forward the next phases of value for shareholders" ]]> http://www.proactiveinvestors.com.au/companies/stocktube/9355/carnarvon-petroleum-set-to-bring-forward-the-next-phases-of-value-for-shareholders--9355.html Wed, 23 May 2018 18:07:00 +1000 http://www.proactiveinvestors.com.au/companies/stocktube/9355/carnarvon-petroleum-set-to-bring-forward-the-next-phases-of-value-for-shareholders--9355.html <![CDATA[News - Carnarvon Petroleum about to set-up Dorado-1 well targeting gas and liquids ]]> http://www.proactiveinvestors.com.au/companies/news/197502/carnarvon-petroleum-about-to-set-up-dorado-1-well-targeting-gas-and-liquids-197502.html Carnarvon Petroleum Limited (ASX:CVN) is about to start drilling set-up for the Dorado-1 well which will target gas and liquids at the Phoenix project on the North West Shelf.

The Ensco-107 jack-up drilling rig is near the well location offshore Western Australia after arriving from Singapore.

Carnarvon and project operator Quadrant Energy are waiting for the swell to subside before the rig moves into the drilling location.

READ: Carnarvon Petroleum expects to start drilling for gas and liquids at Dorado-1 by end of May

Once on location, the legs will be jacked down onto the seafloor and the rig prepared for the start of drilling.

It will be the second well in the current program of Carnarvon and Quadrant with drilling at the nearby Phoenix South-3 well underway.

The primary objective of the Dorado-1 well is to assess the gas and liquids potential in the Caley Member.

Probable gas prospect

Dorado is considered as a probable gas prospect with significant associated condensate.

There is also the possibility for the structure to contain a substantial oil accumulation.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 30 million barrels of associated condensate, which is equivalent to 125 million barrels of oil.

Multiple secondary targets have been identified in the Crispin and Milne members, and these will also be assessed by the Dorado-1 exploration well.

READ: Carnarvon Petroleum’s Phoenix South-3 well reaches 3,733 metres targeting North West Shelf gas and liquids

A semi-sub rig is drilling the Phoenix South-3 well in the adjacent WA-435-P permit.

This well is setting casing at 3,733 metres (measured depth) before drilling ahead to the Caley formation target at around 5,300 metres.

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Wed, 23 May 2018 13:38:00 +1000 http://www.proactiveinvestors.com.au/companies/news/197502/carnarvon-petroleum-about-to-set-up-dorado-1-well-targeting-gas-and-liquids-197502.html
<![CDATA[News - Carnarvon Petroleum’s Phoenix South-3 well reaches 3,733 metres targeting North West Shelf gas and liquids ]]> http://www.proactiveinvestors.com.au/companies/news/197146/carnarvon-petroleums-phoenix-south-3-well-reaches-3733-metres-targeting-north-west-shelf-gas-and-liquids-197146.html Carnarvon Petroleum Limited (ASX:CVN) advises that drilling of the Phoenix South-3 well has reached 3,733 metres measured depth on its way down to gas and condensate in the Caley Member at about 5,300 metres.

After drilling the 17 1/2 inch hole to 3,733 metres, Phoenix project operator Quadrant Energy is setting the 13 5/8 casing in place.

READ: Carnarvon Petroleum on schedule with drilling at Phoenix South-3 well

When this casing is set and cemented operations will continue with drilling in 12 1/4 inch hole and concurrently opening to 14 3/4 inch diameter.

Opening the hole diameter allows for an additional casing string to be run over the Hove, prior to drilling the Caley objective in 8 1/2 inch hole.

Phoenix is on the prolific North West Shelf, off the coast of Western Australia.

Evaluating Caley Member

The primary objective for the well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted anti-clinal closure.

This was partially penetrated with the Phoenix South-2 well, which encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The well being drilled is around 560 metres north-north-east of the Phoenix South-2 well.

It has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

READ: Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field

Phoenix South-3 is targeting a closure estimated by Carnarvon to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate.

This is equivalent to 143 million barrels of oil.

Prospective resources are the estimated quantities that may potentially be recovered by the application of a future development project and may relate to undiscovered accumulations.

Dorado-1 well next

Carnarvon and Quadrant aim to start drilling the second well at the Phoenix project, Dorado-1, by the end of May.

An Ensco 107 jackup drilling rig is heading to the Dorado location and will also assess the gas and liquids potential of the Caley Member.

The Dorado structure at Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 30 million barrels of associated condensate.

This is equivalent to 125 million barrels of oil.

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Thu, 17 May 2018 10:22:00 +1000 http://www.proactiveinvestors.com.au/companies/news/197146/carnarvon-petroleums-phoenix-south-3-well-reaches-3733-metres-targeting-north-west-shelf-gas-and-liquids-197146.html
<![CDATA[News - Carnarvon Petroleum on schedule with drilling at Phoenix South-3 well ]]> http://www.proactiveinvestors.com.au/companies/news/196799/carnarvon-petroleum-on-schedule-with-drilling-at-phoenix-south-3-well-196799.html Carnarvon Petroleum Limited (ASX:CVN) is progressing as planned at the Phoenix South-3 well aimed at evaluating the gas and condensate potential of the Caley Member at the Phoenix project on the North West Shelf.

The 20-inch casing has been set and cemented in place, the Blowout Preventer has been installed and pressure tested, and drilling has started in 17 1/2 inch hole.

READ: Carnarvon Petroleum on track with Phoenix South-3 drilling program

Carnarvon’s partner in the Phoenix project, Quadrant Energy, is drilling ahead in 17 1/2 inch hole at measured depth of 3,114 metres.

Quadrant estimates it will take around another week to finish drilling this section of hole to about 3,700 metres after which 13 5/8 inch casing will set.

A number of hole sections will be drilled prior to the primary Caley target section, which is expected to be intersected at a depth of around 5,300 metres.

Evaluating gas and condensate potential

The primary objective for the well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted anti-clinal closure partially penetrated with the Phoenix South-2 well.

That well, 560 metres from the current well, encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

Location of the well within the Phoenix project.

READ: Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the Caley Member’s hydrocarbon-bearing formations.

It will target a closure estimated by Carnarvon to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate.

This equates to 143 million barrels of oil equivalent.

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Fri, 11 May 2018 15:20:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196799/carnarvon-petroleum-on-schedule-with-drilling-at-phoenix-south-3-well-196799.html
<![CDATA[News - Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field ]]> http://www.proactiveinvestors.com.au/companies/news/196793/carnarvon-petroleum-raises-16-million-to-assist-in-redeveloping-the-buffalo-oil-field-196793.html Carnarvon Petroleum Limited (ASX:CVN) has raised $16 million in a placement to facilitate redevelopment of the Buffalo oil field on the North West Shelf.

The placement was primarily to new investors at a price of 13 cents per share and existing shareholders have the chance to participate in a share purchase offer at the same price to raise up to $4 million.

This represents a 14.5% discount to the average share price over the last 30 days and 18.69% to the last 10 days.

READ: Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well

Chief executive officer Adrian Cook said: “The Buffalo project has the potential to generate significant value that’s ideally suited to Carnarvon in terms of scale, time to first production and overall risk profile.

"This capital raise demonstrates our expeditious approach to make this production opportunity a reality for shareholders, particularly as we see oil prices strengthening from the recent lows of previous years.”

Investors have shown strong support for the company’s oil and gas strategy.

As well as the successful placement, Carnarvon’s shares reached a 12-month high of 17.5 cents this month.

READ: Carnarvon Petroleum on track with Phoenix South-3 drilling program

This comes on the back of strong news flow from the Phoenix project where partner Quadrant Energy is drilling and from the Buffalo project where Carnarvon is preparing a program.

Placement funds will enable the company to develop Buffalo-10 well, the first of three production wells to be drilled in this oil redevelopment project.

Plans to drill in 2019

Expected timing for drilling to start on the first well is between March and September 2019, after the end of the cyclone season.

The wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

Buffalo-10 will be positioned to test new oil in the attic accumulation as well as drill deeper into the oil pool in the field’s previously developed portion.

With a depth to reservoir of around 3,250 metres, it is expected to take around 30 days to drill.

Buffalo covered by Timor-Leste treaty

The Buffalo oil field is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste and the field will be completely within Timor-Leste’s jurisdiction.

Carnarvon is engaging with suppliers for redevelopment of the field, including preparing the basis of well design, starting the environmental approvals process and identification of rigs.

The company has also started discussions with floating production, storage and offloading (FPSO) providers, and is resourcing staff and contractors.

Drilling at Phoenix

Further to the southwest, Carnarvon is participating in drilling the Phoenix South-3 well and will soon begin drilling the Dorado-1 well in its Phoenix project.

Cook said: "Carnarvon now offers investors two high-quality, organically derived projects progressing to commercialisation phases in the near term.”

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Fri, 11 May 2018 14:31:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196793/carnarvon-petroleum-raises-16-million-to-assist-in-redeveloping-the-buffalo-oil-field-196793.html
<![CDATA[News - Carnarvon Petroleum enters trading halt ahead of capital raising ]]> http://www.proactiveinvestors.com.au/companies/news/196691/carnarvon-petroleum-enters-trading-halt-ahead-of-capital-raising-196691.html Carnarvon Petroleum Ltd (ASX:CVN) has been granted a trading halt by the ASX pending the release of information regarding a proposed capital raising.

Shares of the company will remain halted until either the information is released to the market or the commencement of trading next Monday, whichever occurs first.

READ: Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well

Carnarvon is progressing redevelopment plans for the Buffalo Oil Field in the Timor Sea with preparations underway for the first production well.

Buffalo-10 will be the first of three proposed production wells at the project which is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste.

The wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

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Thu, 10 May 2018 10:44:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196691/carnarvon-petroleum-enters-trading-halt-ahead-of-capital-raising-196691.html
<![CDATA[News - Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well ]]> http://www.proactiveinvestors.com.au/companies/news/196293/carnarvon-petroleum-moves-closer-to-oil-production-at-buffalo-with-preparations-for-first-well-196293.html Carnarvon Petroleum Limited (ASX:CVN) is progressing redevelopment plans for the Buffalo Oil Field in the Timor Sea with preparations underway for the first production well.

Buffalo-10 will be the first of three proposed production wells at the project which is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste.

The wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

READ: Carnarvon Petroleum’s plans get a boost from Australia-East Timor maritime border treaty

The treaty has enabled Carnarvon to progress the Buffalo redevelopment plans while the company and partner Quadrant Energy are drilling at the Phoenix project to the southwest.

This news is likely to have a positive impact on shares, which have recently traded at a 12-month high of 16 cents.

“Low capital and operating costs”

Chief executive officer Adrian Cook said: “The low capital and operating costs mean Buffalo is a very high yielding, standout project at current oil prices.

“It is a project capable of supporting a mix of funding alternatives which could naturally include a portion of Carnarvon’s current cash, debt funding and partner and industry funding where interest is very strong.”

$48 million in cash

Carnarvon had $48 million in cash as at March 31, 2018.

The treaty means the Buffalo oil field will be completely within Timor-Leste jurisdiction.

As such, Carnarvon has established an office in Dili, appointed a specialist Timor-Leste advisor and initiated a series of meetings with government agency Autoridade Nacional do Petróleo e Minerais.

These meetings have demonstrated that the parties are aligned in wanting to achieve first oil as soon as practicable.

Engaging with suppliers

Carnarvon is engaging with suppliers for the redevelopment of the field, including preparing the basis of well design, starting the environmental approvals process and identification of rigs.

The company has also commenced discussions with floating production, storage and offloading (FPSO) providers, and is resourcing staff and contractors.

Field development consists of a well head platform connected to an FPSO through a production pipeline and control umbilicals.

Buffalo-10 will be positioned to test the new oil in the attic accumulation as well as drill deeper into the oil pool in the previously developed portion of the field.

With a depth to reservoir of around 3,250 metres, it is expected to take around 30 days to drill.

It will complete with an extensive formation evaluation program, which will complement the geological knowledge from the previous oil field well intersections.

Cost effective jack-up rig

Being in shallow water of only 25 metres, a cost-effective jack-up rig will be used to drill the well.

Cook said: “The nature of the project is also well suited to Carnarvon in terms of its scale, time to first production and overall risk profile.

“As such Carnarvon intends to take a leading role in redeveloping the oil field.”

Independent cost analysis

Carnarvon commissioned an independent cost analysis of the redevelopment with the report showing capital expenditure below US$150 million.

Annual operational costs were separately assessed in a range of US$80 million to US$100 million, on the basis the field has a production life of around five years.

The total operational expenditure is expected to be between US$400 million to US$500 million.

READ: Carnarvon Petroleum drilling to add to gas and condensate bounty at Phoenix project

Buffalo is therefore deemed a low-cost operation with total expenditure representing US$18 to $21 per barrel.

At Brent oil prices of around US$73 per barrel, the field is expected to generate around US$2.2 billion in revenue.

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Thu, 03 May 2018 09:53:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196293/carnarvon-petroleum-moves-closer-to-oil-production-at-buffalo-with-preparations-for-first-well-196293.html
<![CDATA[News - Carnarvon Petroleum expects to start drilling for gas and liquids at Dorado-1 by end of May ]]> http://www.proactiveinvestors.com.au/companies/news/196002/carnarvon-petroleum-expects-to-start-drilling-for-gas-and-liquids-at-dorado-1-by-end-of-may-196002.html Carnarvon Petroleum Limited (ASX:CVN) and Quadrant Energy expect to start drilling the Dorado-1 well targeting gas and liquids on the North West Shelf by the end of May.

The Ensco 107 jackup drilling rig has left Singapore and is heading to the Dorado location off Western Australia’s northwest coast.

It will be the second well in the current program of Carnarvon and Quadrant with drilling at the nearby Phoenix South-3 well now underway.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts

The primary objective of the Dorado-1 well is to assess the gas and liquids potential in the Caley Member.

It will be less than 20 kilometres from and up-dip of the successful Roc-1 and Roc-2 wells.

The Roc-2 well also tested the deliverability of the reservoir through a well test that achieved around 55 million scf per day of gas and an associated condensate rate of 3,000 barrels per day.

On location by mid-May

Carnarvon expects the rig to be on location by mid-May with drilling to start by the end of the month.

It is expected to take around 60 days to complete and be at the top of the primary objective in around 35 days.

READ: Carnarvon Petroleum on track with Phoenix South-3 drilling program

Based on the results at Roc and Phoenix South, Dorado is considered as a probable gas prospect, with significant associated condensate.

There is also the possibility for the structure to contain a substantial oil accumulation.

This is due to the known presence of oil-prone source-rocks in the section at Roc, and the possibility that gas at Roc has displaced the oil up-dip into Dorado.

Up-dip of Roc discoveries

As the Dorado-1 well will be up-dip of the Roc discoveries, the overall chance of success of this prospect is enhanced.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 30 million barrels of associated condensate, which is equivalent to 125 million barrels of oil.

Seismic line showing the incised Dorado Canyon which defines the Dorado trap.

Secondary targets

Multiple secondary targets have been identified in the Crispin and Milne members, and these will also be assessed by the Dorado-1 exploration well.

The Dorado structure is clearly defined on 3-D seismic.

A shale-filled canyon, the Dorado Canyon, which has incised into the Caley and Milne sediments, creates a large trap geometry in the target levels, bounded to the west, south and east.

Similar shale-filled canyon trap geometries have proven effective in a number of gas fields in Victoria’s Gippsland Basin.

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Mon, 30 Apr 2018 10:27:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196002/carnarvon-petroleum-expects-to-start-drilling-for-gas-and-liquids-at-dorado-1-by-end-of-may-196002.html
<![CDATA[News - Carnarvon Petroleum on track with Phoenix South-3 drilling program ]]> http://www.proactiveinvestors.com.au/companies/news/195800/carnarvon-petroleum-on-track-with-phoenix-south-3-drilling-program-195800.html Carnarvon Petroleum Limited (ASX:CVN) has provided an update on the drilling of the Phoenix South-3 well, offshore Western Australia.

The report, which indicates drilling is going to plan, was advised by the operator and 80% joint venture partner Quadrant Energy.

Since the last report, after setting the 36-inch surface conductor, the well has been drilled down to around 1,500 metres measured depth in a 26-inch hole size.

Well objective

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted anti-clinal closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

Close proximity to Phoenix South-2

Phoenix South-3 is around 560 metres north-northeast of the Phoenix South-2 well.

The well is targeting a closure estimated by Carnarvon to contain a gross mean recoverable prospective resource of 489 billion standard cubic feet of gas and 57 million barrels of associated condensate.

This represents 143 million barrels of oil equivalent.

Brokers like the story

Analysts at Hartleys view Carnarvon as one of the best stocks to target to gain leverage to the oil price recovery.

Furthermore, the broker said that the upcoming drilling campaign is potentially a transformational stage for the company.

Hartleys analyst Aiden Bradley said: “Discoveries to date in the Bedout Sub-Basin (especially Phoenix South Caley) have contained a very high liquids content and is a potential game-changer in terms of the economics of any potential development in the sub-basin.

“It is also a huge differentiator in comparison to the investment returns from a dry gas field such as the developed (similarly sized) Reindeer Field.”

The broker has a price target of 25 cents on the stock, representing a sizeable premium to the 12-month high of 15.5 cents which was struck this week.

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Thu, 26 Apr 2018 09:11:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195800/carnarvon-petroleum-on-track-with-phoenix-south-3-drilling-program-195800.html
<![CDATA[News - Carnarvon Petroleum drilling to add to gas and condensate bounty at Phoenix project ]]> http://www.proactiveinvestors.com.au/companies/news/195512/carnarvon-petroleum-drilling-to-add-to-gas-and-condensate-bounty-at-phoenix-project-195512.html Carnarvon Petroleum Limited (ASX:CVN) aims to add more than 1 trillion standard cubic feet of gas and 88 million barrels of associated condensate from drilling underway on the North West Shelf of Western Australia.

The company’s partner Quadrant Energy has started a new drilling program at the Phoenix project with the Phoenix South-3 well underway and the Dorado-1 well to start in May.

Carnarvon has 20% of the project with Quadrant holding 80% and is the operator.

READ: Carnarvon Petroleum begins drilling Phoenix South-3 well to unlock gas, condensate potential

The objective of the 2018 drilling program is to build on the already discovered oil and gas resources and to assist in future decisions around optimising a commercial development.

Four discoveries have been made from the four wells drilled to date by the JV partners at Phoenix - Phoenix South-1, Roc-1, Roc-2 and Phoenix South-2.

Gas resources to date total 332 billion standard cubic feet (Bscf) while condensate resources total 27 million barrels (mm bbls).

Carnarvon and Quadrant believe the volumes from the Phoenix South-3 and Dorado-1 wells will materially improve these resources.

READ: Carnarvon Petroleum trades strongly ahead of active drilling campaign

Phoenix South-3 alone is estimated to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 mm bbls of associated condensate, which is equivalent to 143 million barrels of oil.

The Dorado structure also has the potential to contain a number of additional targets beneath the Caley interval.

These could contain significant additional volumes of gas and condensate, albeit having a lower predicted chance of geological success.

The partners believe an exciting aspect of the Phoenix project is the potential to unlock further gas and condensate and oil through additional drilling.

Targets already identified within comfortable tie back distance to a development around the Roc area include the Apus and Mensa prospects.

In addition, a large number of prospects and leads are continually being matured through ongoing technical work.

Key investment attractions

Phoenix has a number of key attractions for investors, including dual income stream potential from oil and gas, proximity to infrastructure and positioning in shallow water of about 100 metres.

The latter substantially reduces the cost and complexity of a development, allowing for the aggregation of discoveries in the near vicinity.

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Mon, 23 Apr 2018 10:22:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195512/carnarvon-petroleum-drilling-to-add-to-gas-and-condensate-bounty-at-phoenix-project-195512.html
<![CDATA[News - Carnarvon Petroleum begins drilling Phoenix South-3 well to unlock gas, condensate potential ]]> http://www.proactiveinvestors.com.au/companies/news/195104/carnarvon-petroleum-begins-drilling-phoenix-south-3-well-to-unlock-gas-condensate-potential-195104.html Carnarvon Petroleum Limited (ASX:CVN) and its joint venture partner and project operator Quadrant Energy have commenced drilling at the Phoenix South-3 well.

The well is in waters off north-western Western Australia with other projects such as Condor and Eagle to the north and Labyrinth and Maracas to the south.

Since arriving on site, the rig successfully completed the ‘ready to operate’ process and has finished drilling the 42-inch hole in preparation for the 36-inch surface conductor.

Aiming to penetrate and evaluate hydrocarbon bearing formations

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon bearing formations of the Caley Member.

READ: Carnarvon Petroleum trades strongly ahead of active drilling campaign

Drilling of the Phoenix South-3 well is estimated to take around 90 days to reach the target depth of about 5,500 metres.

The operator’s plans encompass staged drilling just above and through the Caley reservoir section.

The well will target a closure that is estimated to contain a gross mean recoverable prospective resource of 489 Bscf (billions of standard cubic feet) of gas and 57 million barrels of associated condensate, which is equivalent to 143 million barrels of oil.

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Tue, 17 Apr 2018 12:54:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195104/carnarvon-petroleum-begins-drilling-phoenix-south-3-well-to-unlock-gas-condensate-potential-195104.html
<![CDATA[News - Carnarvon Petroleum trades strongly ahead of active drilling campaign ]]> http://www.proactiveinvestors.com.au/companies/news/194997/carnarvon-petroleum-trades-strongly-ahead-of-active-drilling-campaign-194997.html Carnarvon Petroleum Limited (ASX:CVN) and its joint venture partner Quadrant Energy are preparing to commence drilling at the Phoenix South-3 well.

The well is in waters off north-western Western Australia with other projects such as Condor and Eagle to the north and Labyrinth and Maracas to the south.

Testing same interval as Phoenix South-2

The Phoenix South-3 well will test the same interval that contained gas and condensate in the Phoenix South-2 well 560 metres away.

The cost to redrill to the top of the Caley interval will be mostly covered by an insurance claim associated with the Phoenix South-2 well operation, which had to cease drilling at this interval.

Dorado-1 also targeting the Caley interval

In addition to the Phoenix South-3 well, the upcoming Dorado-1 well is expected to commence drilling in May 2018.

The primary zone in Dorado-1 is also the Caley interval, although the well will also test slightly deeper secondary targets for additional oil and gas.

Other potential catalysts

Carnarvon was also awarded a new permit, the Eagle Project, in the highly prospective Vulcan sub-basin, near Carnarvon’s recently acquired Condor project.

Eagle is in a hydrocarbon prone region within the North-West Shelf and contains several Jurassic and Cretaceous oil leads over multiple reservoir levels.

Once the recent Cygnus 3D seismic has been processed over the area, Carnarvon will progress its technical and prospect development work.

Financially robust to fund drilling

Carnarvon had a cash balance of $48.1 million at the end of the quarter.

With existing cash and the successful insurance claim, Carnarvon remains well-funded for its upcoming Phoenix and Dorado drilling campaign.

Consensus share price target implies upside

Furthermore, its shares have been trading strongly, having more than doubled in fiscal 2018 to a 12-month high of 16 cents last week.

This rerating occurred under the third-highest volumes recorded in the last 12 months, suggesting confidence is mounting regarding the company’s active exploration program.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover

However, it is worth noting that the 12-month consensus price target of 24 cents suggests there is share price upside of 60% from Monday morning’s opening price of 15 cents.

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Mon, 16 Apr 2018 11:50:00 +1000 http://www.proactiveinvestors.com.au/companies/news/194997/carnarvon-petroleum-trades-strongly-ahead-of-active-drilling-campaign-194997.html
<![CDATA[News - Carnarvon Petroleum expects drilling to start shortly at Phoenix South-3 after rig arrives ]]> http://www.proactiveinvestors.com.au/companies/news/194193/carnarvon-petroleum-expects-drilling-to-start-shortly-at-phoenix-south-3-after-rig-arrives-194193.html Carnarvon Petroleum Limited (ASX:CVN) expects drilling will start at the Phoenix South-3 well on Western Australia's North West Shelf shortly with the rig now at the site.

The GSF Development Driller-1 semi-submersible drilling rig will be anchored in place and ballasted over the next few days.

Phoenix South-3 joint venture partner and project operator Quadrant Energy expects to start drilling around April 10.

READ: Carnarvon Petroleum rig delay only a small hitch ahead of a big year of exploration

The objective of the well is to assess gas and condensate discovered at the top of the Caley interval in the 2017 Phoenix South-2 well.

It will be 560 metres from the Phoenix South-2 well and has been constructed to specifically allow for evaluation of this interval.

Quadrant is targeting an estimated gross mean recoverable prospective resource of 489 million standard cubic feet of gas and 57 million barrels of gas condensate.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover

Carnarvon has a 20% stake in Phoenix South-3 as well as in the Dorado-1 well, where drilling is expected to start in May.

The company is cashed up for its accelerated exploration program, having finished the December 2017 quarter with nearly $50 million in net cash.

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Wed, 04 Apr 2018 09:19:00 +1000 http://www.proactiveinvestors.com.au/companies/news/194193/carnarvon-petroleum-expects-drilling-to-start-shortly-at-phoenix-south-3-after-rig-arrives-194193.html
<![CDATA[News - Carnarvon Petroleum rig delay only a small hitch ahead of a big year of exploration ]]> http://www.proactiveinvestors.com.au/companies/news/193980/carnarvon-petroleum-rig-delay-only-a-small-hitch-ahead-of-a-big-year-of-exploration-193980.html Carnarvon Petroleum Limited (ASX:CVN) expects to start drilling the Phoenix South-3 well on Western Australia's North West Shelf around April 10.

The GSF Development Driller-1 semi-submersible drilling rig is expected to arrive at the site around April 5 after some slight delays.

Transfer of the rig to the site was impeded by cyclone Marcus passing the tow path.

The rig is now in the final stage of its journey from Mauritius to Australia.

A small hitch in a big year

This represents only a minor delay and with multiple share price catalysts at play throughout 2018, many analysts see Carnarvon as undervalued.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover

The objective of the Phoenix South-3 well is to assess gas and condensate discovered at the top of the Caley interval in the 2017 Phoenix South-2 well.

It will be located only 560 metres from the Phoenix South-2 well and has been constructed to specifically allow for evaluation of this interval.

Carnarvon is targeting an estimated gross mean recoverable prospective resource of 489 million standard cubic feet of gas and 57 million barrels of gas condensate.

Brokers unperturbed by delay

Aiden Bradley from Hartleys Research just reassessed the company, taking into account the delay.

He maintained his speculative buy recommendation and price target of 25 cents, reiterating that the company was one of his top picks in the sector for 2018.

READ: Carnarvon Petroleum’s plans get a boost from Australia - East Timor maritime border treaty

Bradley said: “Our rating is based on a combination of an attractive valuation (low enterprise value/barrels of oil equivalent), newsflow, oil price leverage and takeover appeal.”

Bradley’s price target implies upside of nearly 100% to Carnarvon’s closing price of 13 cents on Wednesday.

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Thu, 29 Mar 2018 09:06:00 +1100 http://www.proactiveinvestors.com.au/companies/news/193980/carnarvon-petroleum-rig-delay-only-a-small-hitch-ahead-of-a-big-year-of-exploration-193980.html
<![CDATA[News - Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover ]]> http://www.proactiveinvestors.com.au/companies/news/192809/carnarvon-petroleum-enters-2018-with-multiple-share-price-catalysts-including-the-prospect-of-a-takeover-192809.html Carnarvon Petroleum Limited (ASX:CVN) is viewed by analysts at Hartleys as an under-appreciated oil play particularly given its leverage to a recovering oil price.

Indeed, it is difficult to find an oil junior that offers numerous share price catalysts that include the exploration of multiple highly prospective projects, and even the prospect of a takeover.

The company is cashed up for its accelerated exploration program, finishing the December quarter with nearly $50 million in net cash.

Estimated cash outflow for the next quarter is close to $10 million.

Carnarvon lays the foundations in December half

During the six months to 31 December 2017, Carnarvon made significant progress on its most northerly field off Western Australia, the Buffalo project.

The company completed technical work which identified the potential for redeveloping the existing Buffalo oil field.

In addition, Carnarvon, along with its joint venture partner Quadrant Energy, began preparation for the Phoenix South-3 well in the WA 435P permit and the Dorado-1 well.

Carnarvon has a 20% stake in these projects.

Substantial first half newsflow anticipated

The wells are expected to commence in March/April 2018 and May 2018 respectively.

The company was also awarded two new permits AC/P62 (Condor) and EP 497 (Santa Cruz) during the half year, which represents a continuation of its strategy to acquire quality assets within the North-West Shelf.

Phoenix South-3 poised for April start

Carnarvon said the drill rig for the Phoenix South-3 well was expected to be in position off the coast of Western Australia by the end of March.

The semi-submersible Driller-1 will be targeting a mean recoverable 489 billion standard cubic feet (bscf) of gas and 57 million barrels of gas condensate.

READ: Carnarvon Petroleum says drill rig will be at Phoenix South-3 well site by the end of March

Operated by Quadrant Energy, the latest well is just 560 metres from the Phoenix South-2 discovery.

Gas and condensate in the Phoenix South structure is in addition to that in the Roc structure.

The gross contingent resource at Roc is 332 bscf of gas and 19 million barrels of condensate.

Potential for lower cost drilling at Eagle Project

Hartleys’ positive take on the company appears justified given the prospect of establishing production in areas where oil can be sourced at shallow depths, making for low-cost drilling.

Carnarvon's projects are in the prolific North West Shelf.

This is particularly the case with the recently acquired Eagle Project, a 585 square kilometre permit in shallow water with multiple targets.

It is in the same proven oil producing basin that includes the Talbot, Jabiru, and Cassini/Challis oil fields.

Carnarvon backs its leading technology to unlock value

Carnarvon prides itself on applying leading technologies to its technical work, assisting in unlocking production potential.

The Cygnus MC3D (Phase III) survey being acquired by Polarcus over about 542 square kilometres of the recently awarded project is expected to create a new standard in the interpretation of the prospectivity in this permit.

Adrian Cook, managing director said: “The Eagle Project is another demonstration of our team’s ability to acquire oil-prone exploration permits within proven petroleum systems.

“This is Carnarvon’s second permit within the Vulcan sub-basin, adjacent to the Skua and Cassini/Challis oil fields.

“Given the shallow water depths, jack-up drilling is possible, meaning the potential for lower cost drilling and field developments in the permit.”

Carnarvon could be a takeover target

Hartleys also believes there is the potential for corporate activity given the group is now one of the largest independent owners of uncontracted gas in Western Australia.

Acquisition activity isn’t new to operators in that region.

AWE Ltd (ASX:AWE) attracted takeover interest in 2017 and Hartleys juxtaposed whether 2018 will see the losing bidders on AWE, or even another third party, come to the table.

At the end of November, China Energy Reserve and Chemical Group Co made a bid for AWE attracted by its Waitsia asset which was subsequently trumped by Mineral Resources (ASX:MIN).

Underlining the fierce competition for energy in Western Australia, Mitsui & Co Ltd (TYO:8031) came over the top with a superior bid.

Consequently, there are two players who failed in their asset grab that have demonstrated their appetite for Carnarvon-type projects.

Share price implies upside of circa 100% to Hartleys target price

Hartleys has a speculative buy rating on Carnarvon based on a combination of an attractive valuation relative to its enterprise value to barrels of oil equivalent and takeover appeal.

The broker has a 12-month share price target of $0.25 on the stock.

While the company’s shares have roughly doubled in the last six months, the recent 12-month high of 15 cents is well shy of Hartleys' 12-month target price of 25 cents.

However, any one of the numerous share price catalysts could see the company trading more in line with the broker’s valuation.

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Thu, 08 Mar 2018 13:38:00 +1100 http://www.proactiveinvestors.com.au/companies/news/192809/carnarvon-petroleum-enters-2018-with-multiple-share-price-catalysts-including-the-prospect-of-a-takeover-192809.html
<![CDATA[News - Carnarvon Petroleum says drill rig will be at Phoenix South-3 well site by the end of March ]]> http://www.proactiveinvestors.com.au/companies/news/192798/carnarvon-petroleum-says-drill-rig-will-be-at-phoenix-south-3-well-site-by-the-end-of-march-192798.html Carnarvon Petroleum Limited (ASX:CVN) said the drill rig for the Phoenix South-3 well is expected to be in position off the coast of Western Australia by the end of March.

The semi-submersible Driller-1 (pictured above) has left Port Louis, Mauritius, and once in location will be targeting a mean recoverable 489bscf of gas and 57 million barrels of gas condensate.

Operated by Quadrant Energy, the latest well is just 560 metres from the Phoenix South-2 discovery.

Gas and condensate in the Phoenix South structure is in addition to that in the Roc structure.

The gross contingent resource at Roc is 332 Bscf of gas and 19 million barrels of condensate.

READ: Carnarvon Petroleum’s plans get a boost from Australia - East Timor maritime border treaty

Earlier this week Carnarvon was notified that its Buffalo oil field will now fall within Timor-Leste’s exclusive jurisdiction following the signing of a maritime border treaty between Australia and Timor-Leste.

This provides that security of title and legal rights held by Carnarvon will be preserved through conditions equivalent to those already in place under Australian domestic law.

The treaty finally determines each nation’s entitlement and ownership of the rich oil and gas reserves in the Timor Sea.

READ: Carnarvon Petroleum to unlock value in new Eagle Project using improved technology

Carnarvon recently added to its North West Shelf assets through the awarding of the AC/P63 permit within the Southern Vulcan Sub-basin.

The 585 square kilometre permit, which will be known as the Eagle Project, is in shallow water and contains multiple attractive leads.

It is in the same proven oil producing basin that includes the Talbot, Jabiru, and Cassini/Challis oil fields.

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Thu, 08 Mar 2018 11:15:00 +1100 http://www.proactiveinvestors.com.au/companies/news/192798/carnarvon-petroleum-says-drill-rig-will-be-at-phoenix-south-3-well-site-by-the-end-of-march-192798.html
<![CDATA[News - Carnarvon Petroleum’s plans get a boost from Australia - East Timor maritime border treaty ]]> http://www.proactiveinvestors.com.au/companies/news/192726/carnarvon-petroleums-plans-get-a-boost-from-australia-east-timor-maritime-border-treaty-192726.html Carnarvon Petroleum Limited’s (ASX:CVN) Buffalo oil field will now fall within Timor-Leste’s exclusive jurisdiction following the signing of a maritime border treaty between Australia and Timor-Leste.

The treaty provides that security of title and legal rights currently held by Carnarvon will be preserved through conditions equivalent to those already in place under Australian domestic law.

Adrian Cook, managing director, said: “We wish to congratulate the Australian and Timor-Leste Governments for establishing certainty over the maritime boundaries in the Timor Sea and for respecting the rights and interests of affected companies such as Carnarvon.

“We have established a positive and constructive working relationship with representatives from the ANPM and Timor-Leste Government and look forward to building upon this as we work to redevelop the Buffalo oil field.”

More certainty around Carnarvon’s redevelopment plans

The treaty finally determines each nation’s entitlement and ownership of the rich oil and gas reserves in the Timor Sea.

The Buffalo Oil Field was discovered by BHP (ASX:BHP) in 1996 and produced 20.5 million stock tank barrels of highly-undersaturated, light oil. Carnarvon secured the Buffalo Project in 2016.

Carnarvon will now continue to work with the authorities in Timor-Leste to have the required production sharing contract (PSC) in place once the treaty is ratified by Australia and Timor-Leste.

Meanwhile, the company may proceed with operation and preparatory activities for redeveloping the field prior to the ratification of the treaty.

READ: Carnarvon Petroleum’s improved data likely to take Buffalo oil field to development

The company recently received new data that shows increasingly clear definition around the producing reservoir in the Buffalo oil field.

The data further improves imaging at the Elang formation, which is the producing reservoir in the field off Western Australia’s northern coast.

A seismic image shows reservoir up-dip of the Buffalo-5 production well into an area Carnarvon expects will contain unproduced oil.

Aiming to progress the project to drilling and development

At this stage, the Carnarvon team believe the data set is sufficient to take the project forward to drilling and development.

The discussions held so far with officials from Timor-Leste make it clear Carnarvon and Timor-Leste are equally agreed to achieve first oil as soon as possible.

Importantly, Carnarvon believes there to be a number of benefits in developing the field within the Timor-Leste framework.

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Wed, 07 Mar 2018 12:44:00 +1100 http://www.proactiveinvestors.com.au/companies/news/192726/carnarvon-petroleums-plans-get-a-boost-from-australia-east-timor-maritime-border-treaty-192726.html
<![CDATA[News - Carnarvon Petroleum to showcase oil and gas work during information day ]]> http://www.proactiveinvestors.com.au/companies/news/192634/carnarvon-petroleum-to-showcase-oil-and-gas-work-during-information-day-192634.html Carnarvon Petroleum Limited (ASX:CVN) will showcase its portfolio of oil and gas projects along with the exploration technologies being used during an information day later this month.

The company is inviting existing and prospective shareholders to the open day on Thursday 22 March.

Carnarvon’s team will be available to talk through each of the company’s projects in the North West Shelf area off the coast of Western Australia and to answer questions.

Interactive open day

Recent company announcements and corporate presentations will form the basis of a number of visual aids to assist with the interactive open day.

DownUnder GeoSolutions will also have members of their team available to discuss their diverse range of innovative geosciences software, products and services.

Many of these have played a significant part in building Carnarvon’s asset portfolio.

The event will be held throughout the day to provide flexibility to attendees and will be held in a casual setting.

It will be held on the ground floor of 76 Kings Park Road in West Perth from 11am to 6pm.

READ: Carnarvon Petroleum’s improved data likely to take Buffalo oil field to development

Carnarvon has received new data that shows increasingly clear definition around the producing reservoir in the Buffalo oil field.

Buffalo is in the Bonaparte Basin off Western Australia’s north coast.

The data further improves imaging at the Elang formation, which is the producing reservoir in the field.

A seismic image shows reservoir up-dip of the Buffalo-5 production well into an area Carnarvon expects will contain unproduced oil.

This improvement in data quality increases Carnarvon’s confidence in the redevelopment of the field.

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Tue, 06 Mar 2018 10:14:00 +1100 http://www.proactiveinvestors.com.au/companies/news/192634/carnarvon-petroleum-to-showcase-oil-and-gas-work-during-information-day-192634.html
<![CDATA[News - Carnarvon Petroleum’s improved data likely to take Buffalo oil field to development ]]> http://www.proactiveinvestors.com.au/companies/news/191870/carnarvon-petroleums-improved-data-likely-to-take-buffalo-oil-field-to-development-191870.html Carnarvon Petroleum Limited (ASX:CVN) has received new data that shows increasingly clear definition around the producing reservoir in the Buffalo oil field.

The data further improves imaging at the Elang formation, which is the producing reservoir in the field off Western Australia’s northern coast.

A seismic image shows reservoir up-dip of the Buffalo-5 production well into an area Carnarvon expects will contain unproduced oil.

The reservoir has been reconciled with important well data within the oil field.

READ: Carnarvon Petroleum's leverage to recovering oil price underappreciated says Hartleys

This improvement in data quality increases Carnarvon’s confidence in the redevelopment of the field.

At this stage, the Carnarvon team believe the data set is sufficient to take the project forward to drilling and development.

Buffalo is in the Bonaparte Basin off Western Australia’s north coast.

Improved data has been made possible due to significant increases in computing power since the field was last in production in 2004.

Carnarvon has been working with seismic reprocessing firm DownUnder GeoSolutions to achieve these results.

The Buffalo project was secured by Carnarvon in 2016 with the objective of running modern seismic technologies to determine whether seismic velocity issues in the past could be solved.

Vast improvement in seismic data

The first iteration appeared to achieve this objective and a second reprocessing iteration was undertaken as an independent check of the initial reprocessing work.

All of the learnings from the first two reprocessing iterations were then incorporated into the third reprocessing iteration.

The result is a data set that is a vast improvement on the historic seismic data that was available when the field was last in production.

In addition to the work being undertaken around the Buffalo oil field, the Carnarvon team are also mapping the untapped exploration prospects within the permit.

READ: Carnarvon Petroleum to unlock value in new Eagle Project using improved technology

The company was recently awarded the AC/P63 permit within the Southern Vulcan Sub-basin, on Western Australia’s North West Shelf.

This 585 square kilometre permit, to be known as the Eagle Project, is in shallow water and contains multiple attractive leads.

It is in the same oil-producing basin that includes the Talbot, Jabiru, and Cassini/Challis oil fields.

READ: Carnarvon Petroleum notes offshore drill rig has reached South African waters ]]>
Tue, 20 Feb 2018 13:28:00 +1100 http://www.proactiveinvestors.com.au/companies/news/191870/carnarvon-petroleums-improved-data-likely-to-take-buffalo-oil-field-to-development-191870.html
<![CDATA[News - Carnarvon Petroleum to unlock value in new Eagle Project using improved technology ]]> http://www.proactiveinvestors.com.au/companies/news/191472/carnarvon-petroleum-to-unlock-value-in-new-eagle-project-using-improved-technology-191472.html Carnarvon Petroleum Limited (ASX:CVN) has been awarded the AC/P63 permit within the Southern Vulcan Sub-basin, on Western Australia’s North West Shelf.

This 585 square kilometre permit which will be known as the Eagle Project is in shallow water and contains multiple attractive leads.

It is situated in the same proven oil producing basin that includes the Talbot, Jabiru, and Cassini / Challis oil fields.

Potential for lower cost drilling and field developments

Adrian Cook, managing director said: “The Eagle Project is another demonstration of our team’s ability to acquire oil prone exploration permits within proven petroleum systems.

“This is Carnarvon’s second permit within the Vulcan Sub-basin, adjacent to the Skua and Cassini/Challis oil fields.

“Given the shallow water depths, jack-up drilling is possible, meaning the potential for lower cost drilling and field developments in the permit.”

Carnarvon backs its leading technology to unlock value

Carnarvon prides itself on applying leading technologies to its technical work to assist in unlocking production potential.

The Cygnus MC3D (Phase III) survey is being acquired by Polarcus over circa 542 square kilometres of the recently awarded project.

It is expected to create a new standard in the interpretation of the prospectivity in this permit.

Imaging far better than historical seismic data

Previous seismic interpretation in this area has been hampered by poor quality historic seismic data.

Carnarvon has already experienced significant improvement in imaging of the sub-surface in its recently awarded Condor Project as a result of the Cygnus MC3D data.

Carnarvon aims to mature the identified leads to prospects within the block, with a number of geoscience work-flows as part of the program.

Carnarvon also targeting shallower plays

These will include a satellite seep survey, petrophysical reviews, burial modelling, fault seal analysis, rock physics analysis and seismic inversion of the Cygnus MC3D.

From a geological perspective management believes there is the potential for secondary plays in the shallower, Late Cretaceous stratigraphy.

These will be the focus of Carnarvon’s ongoing technical investigations.

Analysts see share price upside potential

Carnarvon’s shares have run strongly in 2018, increasing circa 30% to trade as high as $0.13 last week.

However, analysts at Hartley see further upside in the stock with their price target set at $0.25.

READ: Carnarvon Petroleum's leverage to recovering oil price underappreciated says Hartleys ]]>
Mon, 12 Feb 2018 09:32:00 +1100 http://www.proactiveinvestors.com.au/companies/news/191472/carnarvon-petroleum-to-unlock-value-in-new-eagle-project-using-improved-technology-191472.html
<![CDATA[News - Carnarvon Petroleum upgrades prospective resource at the Labyrinth project ]]> http://www.proactiveinvestors.com.au/companies/news/191261/carnarvon-petroleum-upgrades-prospective-resource-at-the-labyrinth-project-191261.html Carnarvon Petroleum Limited (ASX:CVN) has estimated over 1.5 billion barrels of recoverable prospective resource at the Labyrinth project offshore Western Australia on the North West Shelf.

The Ivory prospect, in particular, is the standout target within the Labyrinth project with significant oil prospectively over two levels with a total mean prospective resource of over 420 million barrels.

READ: Carnarvon Petroleum's leverage to recovering oil price underappreciated says Hartleys

Carnarvon’s latest update is based on the completion of detailed petrophysical analysis leveraging the learnings from the successful Roc and Phoenix South wells in the adjacent permits.

Adrian Cook, managing director, said: “The results of the thorough technical work on this project has upgraded the prospective identified to date, making the Labyrinth project a very attractive asset in the Carnarvon portfolio.”

Updated resource estimates for the most significant prospects

The Labyrinth project is located in the Rowley Sub-basin, north of Carnarvon’s Roc and Phoenix South hydrocarbon discoveries, with water depths between 200 and 500 metres.

Revised petrophysical analysis has resulted in updated prospective resource estimates of the most significant prospects and leads.

The total unrisked prospective resource of the eight most highly ranked prospects is now over 1.5 billion barrels recoverable.

Potential drilling locations being identified

Play level risks have also been evaluated for these prospects and leads based on the current 2D seismic data with a resultant 1 in 5 chance of success for the shallower prospects.

3D seismic, expected to be acquired as part of the ongoing work program, will refine potential drilling locations and is also expected to enhance the chance of success of this play.

READ: Carnarvon Petroleum notes offshore drill rig has reached South African waters ]]>
Wed, 07 Feb 2018 12:01:00 +1100 http://www.proactiveinvestors.com.au/companies/news/191261/carnarvon-petroleum-upgrades-prospective-resource-at-the-labyrinth-project-191261.html
<![CDATA[News - Carnarvon Petroleum's leverage to recovering oil price underappreciated says Hartleys ]]> http://www.proactiveinvestors.com.au/companies/news/191044/carnarvon-petroleum-s-leverage-to-recovering-oil-price-underappreciated-says-hartleys-191044.html Carnarvon Petroleum Limited (ASX:CVN) and joint venture partner, Quadrant Energy, are approaching the drilling of the Phoenix South-3 well, with results a potential catalyst.

The Phoenix South-3 well has been designed to evaluate the gas and condensate discovered in the Phoenix South-2 well.

Analysts at Hartley’s note that the appraisal of Phoenix South and confirmed drilling of Dorado-1 could result in Carnarvon being one of the better performers in the oil sector in 2018.

READ: Carnarvon Petroleum and partner lay out drilling plans for 2018 Carnarvon’s exposure to recovering oil price underappreciated

Hartleys is of the view that Carnarvon’s potential exposure to a recovering oil price is possibly underappreciated.

It believes Phoenix South is likely to have a very high liquids content, and the liquids component is so high, the liquids cash flow alone could pay for the development.

Could there be a takeover in the wind

The broker also believes there is the potential for corporate activity given the group is now one of the largest independent owners of uncontracted gas in Western Australia.

Acquisition activity isn’t new to operators in that region.

AWE Ltd (ASX:AWE) attracted takeover interest in 2017 and Hartleys juxtaposed whether 2018 will see the losing bidders on AWE, or even another third party, come to the table.

Share price implies upside of circa 100% to Hartleys target price

Hartleys has a speculative buy rating on Carnarvon based on a combination of an attractive valuation relative to its enterprise value to barrels of oil equivalent and takeover appeal.

The broker has a 12 month share price target of $0.25 on the stock, a substantial premium to Friday’s intraday high of $0.13.

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Fri, 02 Feb 2018 15:28:00 +1100 http://www.proactiveinvestors.com.au/companies/news/191044/carnarvon-petroleum-s-leverage-to-recovering-oil-price-underappreciated-says-hartleys-191044.html
<![CDATA[News - Carnarvon Petroleum notes offshore drill rig has reached South African waters ]]> http://www.proactiveinvestors.com.au/companies/news/190944/carnarvon-petroleum-notes-offshore-drill-rig-has-reached-south-african-waters-190944.html Carnarvon Petroleum Limited (ASX:CVN) and joint venture partner, Quadrant Energy, are approaching the drilling of the Phoenix South-3 well.

In 2017, the Development Driller-1 (DD-1) drilling rig was contracted to drill the Phoenix South-3 well.

The rig commenced its tow to the well location from the northern hemisphere and has now reached port in South Africa for its planned maintenance.

Once maintenance work is complete, the rig will then be towed to the Phoenix South-3 location offshore Western Australia.

Phoenix South-3 objective is to evaluate the Phoenix South-2 discovery

The Phoenix South-3 well has been designed to evaluate the gas and condensate discovered in the Phoenix South-2 well.

Phoenix South-3 will be located some 560 metres north-northeast of the Phoenix South-2 well.

The joint ventures partners have a number of options under consideration for potential development of the Phoenix project resources.

READ: Carnarvon Petroleum eyes potential for gas on the North West Shelf

The Phoenix South Caley structure is estimated to contain a gross mean recoverable prospective resource of 489 billion standard cubic feet of gas and 57 million barrels of associated condensate.

This is the equivalent of 143 million barrels of oil, gross, Pmean.

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Thu, 01 Feb 2018 08:50:00 +1100 http://www.proactiveinvestors.com.au/companies/news/190944/carnarvon-petroleum-notes-offshore-drill-rig-has-reached-south-african-waters-190944.html
<![CDATA[News - Carnarvon Petroleum eyes potential for gas on the North West Shelf ]]> http://www.proactiveinvestors.com.au/companies/news/190340/carnarvon-petroleum-eyes-potential-for-gas-on-the-north-west-shelf-190340.html Carnarvon Petroleum Ltd (ASX:CVN) (28.5%) and partner Quadrant Energy (71.5%) have revealed the potential for a working petroleum system at the Outtrim project on the North West Shelf of Western Australia.

The companies are exploring the Belgravia prospect within the project, adjacent to Woodside Petroleum’s (ASX:WPL) Swell-1 exploration well.

Interestingly, Woodside had intersected interpreted gas sands across a large gross interval of circa 450 metres at Swell-1.

The Swell-1 well result is encouraging in that it has confirmed the presence of a working petroleum system with a large gas column.

Potentially better reservoir quality compared to Swell

Carnarvon’s mapping indicates the crest of the Belgravia structure is updip of the Swell gas discovery and around 650 metres shallower than the Swell-1 structure.

Typically, reservoir quality improves at shallower depths indicating that Belgravia could expect to contain better reservoir quality compared to that reported at Swell.

This is encouraging given that the Belgravia prospect already contains an estimated recoverable 440 billion cubic feet of gas (Bcf) and 18 million barrels (Mmbbls) of condensate.

However, further work is required to fully consider the opportunities arising from the Swell-1 well result, particularly in regards to the consequences for the Belgravia prospect.

READ: Carnarvon Petroleum and partner lay out drilling plans for 2018 ]]>
Mon, 22 Jan 2018 12:07:00 +1100 http://www.proactiveinvestors.com.au/companies/news/190340/carnarvon-petroleum-eyes-potential-for-gas-on-the-north-west-shelf-190340.html
<![CDATA[News - Carnarvon Petroleum and partner lay out drilling plans for 2018 ]]> http://www.proactiveinvestors.com.au/companies/news/188764/carnarvon-petroleum-and-partner-lay-out-drilling-plans-for-2018-188764.html Carnarvon Petroleum Limited (ASX:CVN) and joint venture partner Quadrant Energy are preparing to drill the Phoenix South-3 and Dorado-1 wells within the Phoenix Project located offshore Western Australia.

Carnarvon has a 20% interest in these exploration permits while Quadrant Energy is the operator and has an 80% interest.

READ: Carnarvon Petroleum’s partner to drill Dorado-1 well

The companies are preparing for drilling the wells in 2018, advancing technical work to improve the understanding of the basin’s geology and refining additional drill prospects to pursue in the future.

The Development Driller-1 rig is about to commence its voyage to Western Australia where it will drill a number of wells, with the Phoenix South-3 scheduled to be the first well in the program.

On the current schedule, the well is expected to commence in March 2018 and take around 90 days to drill to the target depth of circa 5,156 metres. 

The primary target is the Caley interval that contained oil and gas 550 metres away in the Phoenix South-2 well in 2017.

The Ensco 107 jack-up drilling rig is expected to commence its mobilisation to Western Australia in April 2018 for multi-activity campaign, with the Dorado-1 well scheduled to be the first well.

Dorado-1 well will be exploring for significant gas and condensate volumes over multiple reservoir sands only circa 15 kilometres from the highly successful Roc-2 well.

The Dorado-1 well is expected to take around 45 days to complete, to a total depth of circa 4,400 metres.

There are also a number of secondary targets beneath the Caley interval that are planned to be evaluated in the Dorado-1 well.

READ NEXT: Carnarvon Petroleum eyes multiple oil leads after securing North West Shelf permit ]]>
Thu, 14 Dec 2017 11:43:00 +1100 http://www.proactiveinvestors.com.au/companies/news/188764/carnarvon-petroleum-and-partner-lay-out-drilling-plans-for-2018-188764.html
<![CDATA[News - Carnarvon Petroleum’s partner to drill Dorado-1 well ]]> http://www.proactiveinvestors.com.au/companies/news/187123/carnarvon-petroleums-partner-to-drill-dorado-1-well-187123.html Carnarvon Petroleum’s (ASX:CVN) partner Quadrant Northwest Pty Ltd has signed a contract to drill the Dorado-1 exploration well within the Phoenix Project located offshore Western Australia.

The Dorado-1 exploration well has a number of large targets.

The primary target is the proven Caley Sandstone which Carnarvon estimates to contain a mean prospective resource of 545 billion cubic feet of gas and 31 million barrels of condensate.

The Milne Sandstone is a secondary target which may contain up to four additional sands of a similar size, albeit with a slightly higher risk.

The Dorado-1 well is expected to commence around May 2018 while the Phoenix South-3 well is expected to commence around March 2018. Rigs have now been secured for both wells.

Adrian Cook, managing director, commented: “The results of our 2018 drilling program are expected to be important contributors to our knowledge of the Bedout sub-basin and its near term commerciality.

“2018 will be an exciting time with the Phoenix South-3 well evaluating the gas and condensate already discovered in the nearby Phoenix South-2 well, while the Dorado-1 well will be exploring for significant gas and condensate volumes over multiple reservoir sands only some 15 kilometres from the highly successful Roc-2 well.”

The Dorado-1 well is located within the WA-437-P exploration permit, which Carnarvon has a 20% interest in alongside partner and operator Quadrant Northwest.

The contract was signed with ENSCO Australia Pty Ltd and the Dorado-1 exploration well will be drilled using the ENSCO-107 jack-up drilling rig.

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Mon, 13 Nov 2017 17:12:00 +1100 http://www.proactiveinvestors.com.au/companies/news/187123/carnarvon-petroleums-partner-to-drill-dorado-1-well-187123.html
<![CDATA[News - Carnarvon Petroleum eyes multiple oil leads after securing North West Shelf permit ]]> http://www.proactiveinvestors.com.au/companies/news/186699/carnarvon-petroleum-eyes-multiple-oil-leads-after-securing-north-west-shelf-permit-186699.html Carnarvon Petroleum Limited (ASX:CVN) has been awarded the AC/P62 permit within the Southern Vulcan Sub-basin in the highly prospective Bonaparte Basin, on Western Australia’s North West Shelf.

This large 1,512 square kilometre permit is in shallow water and contains multiple attractive leads in the same proven producing basin that includes the Montara, Jabiru, Skua and Challis oil fields.

Adrian Cook, managing director, commented: “AC/P62 is another demonstration of our team’s ability to acquire oil prone exploration permits within proven petroleum systems.

“This is Carnarvon’s first permit within the Vulcan Sub-basin, adjacent to the Skua and Montara oil fields.

“Given the shallow water depths, jack-up drilling is possible, meaning the potential for lower cost drilling and field developments in the permit.”

Carnarvon aims to mature the prospects within the block with a number of geoscience work-flows as part of the work program.

These include a satellite seep survey, petrophysical reviews, burial modelling, fault seal analysis, rock physics analysis and seismic inversion of the Cygnus 3D dataset.

Carnarvon has already identified several large, robust Jurassic leads over multiple reservoir levels.

There is also potential for secondary plays in the shallower, Late Cretaceous stratigraphy that will be the focus of Carnarvon’s ongoing technical investigations.

READ NEXT: Carnarvon Petroleum to utilise cash war chest to advance North West Shelf assets ]]>
Fri, 03 Nov 2017 12:16:00 +1100 http://www.proactiveinvestors.com.au/companies/news/186699/carnarvon-petroleum-eyes-multiple-oil-leads-after-securing-north-west-shelf-permit-186699.html
<![CDATA[News - Carnarvon Petroleum to utilise cash war chest to advance North West Shelf assets ]]> http://www.proactiveinvestors.com.au/companies/news/185297/carnarvon-petroleum-to-utilise-cash-war-chest-to-advance-north-west-shelf-assets-185297.html Carnarvon Petroleum (ASX:CVN) remains well-funded after it ended the September quarter with $50 million in cash, which will be used to advance its North West Shelf assets.

Carnarvon has wholly-owned assets, and joint ventures with Quadrant Energy.

The North West Shelf is Australia's most prolific oil & gas region, and is located off the coast of Western Australia.

WATCH NOW: Carnarvon Petroleum's Adrian Cook details the company's oil & gas strategy

Carnarvon and Quadrant have secured a rig contract for the Phoenix South-3 well, which is expected to commence before April 2018 and is being designed as a redrill of Phoenix South-2.

The Caley structure is estimated to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate, being 143 million barrels of oil equivalent.

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Tue, 10 Oct 2017 09:42:00 +1100 http://www.proactiveinvestors.com.au/companies/news/185297/carnarvon-petroleum-to-utilise-cash-war-chest-to-advance-north-west-shelf-assets-185297.html
<![CDATA[Media files - Carnarvon Petroleum's Adrian Cook details the company's oil & gas strategy ]]> http://www.proactiveinvestors.com.au/companies/stocktube/8110/carnarvon-petroleum-s-adrian-cook-details-the-company-s-oil-gas-strategy-8110.html Wed, 20 Sep 2017 22:04:00 +1000 http://www.proactiveinvestors.com.au/companies/stocktube/8110/carnarvon-petroleum-s-adrian-cook-details-the-company-s-oil-gas-strategy-8110.html <![CDATA[News - Carnarvon's Adrian Cook outlined company strategy with investors at Proactive's CEO Sessions ]]> http://www.proactiveinvestors.com.au/companies/news/183849/carnarvon-s-adrian-cook-outlined-company-strategy-with-investors-at-proactive-s-ceo-sessions-183849.html Carnarvon Petroleum's (ASX:CVN) managing director & chief executive, Adrian Cook, joined Proactive's CEO Sessions in Melbourne on Tuesday 12th September and Sydney on Wednesday 13th September.

The company is focused on Australia's most prolific oil & gas region, the North West Shelf off Western Australia.

Key investment highlights include $53 million in cash with no debt, and multiple project catalysts over the next 12-months.

ACCESS THE FULL PRESENTATION HERE ]]>
Fri, 15 Sep 2017 10:25:00 +1000 http://www.proactiveinvestors.com.au/companies/news/183849/carnarvon-s-adrian-cook-outlined-company-strategy-with-investors-at-proactive-s-ceo-sessions-183849.html
<![CDATA[News - Carnarvon Petroleum reveals light premium oil resource for Buffalo, has eye on production ]]> http://www.proactiveinvestors.com.au/companies/news/183019/carnarvon-petroleum-reveals-light-premium-oil-resource-for-buffalo-has-eye-on-production-183019.html Carnarvon Petroleum Ltd (ASX:CVN) wholly-owns the Buffalo project, which is located in Australia’s most prolific oil and gas region, the North West Shelf in Western Australia.

Carnarvon has now revealed that the Buffalo field contains a best estimate resource (2C) of 31 million barrels of light premium oil.

The importance of the resource is that it has a revenue generating capacity of circa US$1.5 billion for Carnarvon, priced at current oil prices.

There is a range of options to redevelop the field and scoping studies show that the redevelopment of the Buffalo oil field is economic at current oil prices; even at the 1C outcome.

This indicates the project to be low risk.

Carnarvon noted that this gives the company confidence to advance the project immediately.

Adrian Cook, managing director and chief executive officer, commented: "A great deal of work has gone into de-risking the Buffalo project.

MEET ADRIAN COOK: Presenting at Proactive's CEO Sessions

"This included engaging independent experts to cross check a significant proportion our work in order to give us the highest possible level of confidence in the remaining oil recoverable from this field.

"The next steps will focus on the field redevelopment and include securing a production licence and associated approvals, advancing redevelopment plans and supplier commitments and finalising funding for the redevelopment activities.

"While significant work is still required, we are incredibly encouraged by the
potential and are pushing forward with the view to bringing the Buffalo field into production."

Next steps is reserves

Upgrading these contingent resources to reserves requires a commitment to develop, encompassing a field development plan and a production license across the Buffalo field.

Work on both of these is underway and will form the basis for the next series of project updates.

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Mon, 28 Aug 2017 10:11:00 +1000 http://www.proactiveinvestors.com.au/companies/news/183019/carnarvon-petroleum-reveals-light-premium-oil-resource-for-buffalo-has-eye-on-production-183019.html
<![CDATA[News - Carnarvon Petroleum's Adrian Cook brings North West Shelf discoveries to Proactive's CEO Sessions ]]> http://www.proactiveinvestors.com.au/companies/news/182624/carnarvon-petroleum-s-adrian-cook-brings-north-west-shelf-discoveries-to-proactive-s-ceo-sessions-182624.html Carnarvon Petroleum Ltd (ASX:CVN) remains focused on Australia’s most prolific oil and gas region, the North West Shelf in Western Australia.

Utilising knowledge gained in the play opening Phoenix area, Carnarvon’s work to date has identified an estimated 1.5 billion barrels of recoverable prospective resource in this project.

Carnarvon is also advancing the wholly-owned Buffalo project, where news is pending.

Find out more from Adrian Cook at Proactive's CEO Sessions.

Click below to register by email

- Melbourne: Tuesday 12th September.
- Sydney: Wednesday 13th September.
- Email Pauline here.
- Call office on (02) 9280 0700.

Presenter list

- Carnarvon Petroleum (ASX:CVN): Adrian Cook
- King River Copper (ASX:KRC): Anthony Barton
- Kin Mining (ASX:KIN): Trevor Dixon
- Great Boulder (ASX:GBR): Stefan Murphy
- Stargroup (ASX:STL): Todd Zani

 

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Fri, 18 Aug 2017 08:19:00 +1000 http://www.proactiveinvestors.com.au/companies/news/182624/carnarvon-petroleum-s-adrian-cook-brings-north-west-shelf-discoveries-to-proactive-s-ceo-sessions-182624.html
<![CDATA[News - Carnarvon Petroleum sees evidence for oil potential in Buffalo ]]> http://www.proactiveinvestors.com.au/companies/news/181662/carnarvon-petroleum-sees-evidence-for-oil-potential-in-buffalo-181662.html Carnarvon Petroleum (ASX:CVN) has now completed an extensive body of technical work around the Buffalo oil field located within its 100% owned WA-523-P permit offshore Western Australia.

The technical work provides strong evidence the original field development did not produce all of the economically recoverable oil.

This was due to imperfect seismic imaging and mapping, which led to suboptimal well placement and significant areas of unswept oil.

Of note, in 2004 those wells were still producing circa 4,000 barrels of oil per day when production ceased.

Carnarvon’s work will now be reviewed by an independent expert with resource estimates expected to be reported in the second half of August 2017.

Adrian Cook, managing director and CEO, commented

“The Carnarvon team have worked tirelessly to create an important new opportunity for shareholders in a reasonably short period of time since its acquisition in May last year.

“The project appealed to us for its low risk oil field potential provided the application of new technology was able to solve historic seismic issues.

“We believe we have achieved this objective and have now engaged an independent expert familiar with FWI to validate our work.

“Once their review is complete we will be in a position to outline details of new recoverable volumes and our plans to redevelop and produce the oil from this field.”

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Mon, 31 Jul 2017 09:11:00 +1000 http://www.proactiveinvestors.com.au/companies/news/181662/carnarvon-petroleum-sees-evidence-for-oil-potential-in-buffalo-181662.html
<![CDATA[News - Carnarvon Petroleum's team map out opportunities on North West Shelf ]]> http://www.proactiveinvestors.com.au/companies/news/181248/carnarvon-petroleum-s-team-map-out-opportunities-on-north-west-shelf-181248.html Carnarvon Petroleum Ltd (ASX:CVN) (28.5%) and partner Quadrant Energy (71.5%) have provided an update on the Outtrim project on the North West Shelf of Western Australia.

Within the project is the Belgravia prospect, containing an estimated recoverable 440 billion cubic feet of gas (Bcf) and 18 million barrels (Mmbbls) of condensate (gross Pmean).

To put the prospect into perspective, Belgravia is similar in size and geology to the nearby Woodside Petroleum (ASX:WPL) operated Swell Triassic prospect.

Adrian Cook, managing director for Carnarvon, commented:

"Carnarvon’s technical team have been comprehensively mapping opportunities at the Triassic interval across the North West Shelf following the successful exploration results in the Phoenix project at the same interval.

"The Belgravia prospect has been assessed as containing a large Triassic level trap similar to the Woodside operated Swell prospect.

"A positive Swell-1 well result would produce a relevant analogue for the Belgravia prospect and the expected timing of the result this year could contribute to the value of Carnarvon’s broadening prospect portfolio."

Outtrim also contains Carnarvon’s 2016 Outtrim East oil discovery.

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Fri, 21 Jul 2017 10:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/181248/carnarvon-petroleum-s-team-map-out-opportunities-on-north-west-shelf-181248.html
<![CDATA[News - Carnarvon Petroleum Ltd's partner Quadrant Energy secures rig for Phoenix South-3 ]]> http://www.proactiveinvestors.com.au/companies/news/181019/carnarvon-petroleum-ltd-s-partner-quadrant-energy-secures-rig-for-phoenix-south-3-181019.html Carnarvon Petroleum Ltd (ASX:CVN) has outlined that partner Quadrant Energy has executed the contract to drill the Phoenix South-3 well with Transocean Limited, which is located on the North West Shelf of Australia.

The GSF Development Driller-1 semi-submersible drilling rig will drill the well, and currently the well commencement window is between 1 February and 1 April 2018.

Quadrant (80%) is the operator, and Carnarvon holds 20%.

Goals at Phoenix South-3

The Phoenix South-3 well is being designed as a redrill of the Phoenix South-2 well that discovered gas and condensate at the top of the Caley interval.

Phoenix South-3 is to be located within close proximity to the Phoenix South-2.

The Phoenix South Caley structure is estimated to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate, which is being 143 million barrels of oil equivalent.

The estimated condensate-to-gas ratio is very significant and is based on surface gas sampling from a permeable section at the top of the Caley Sandstone encountered while drilling the Phoenix South-2 well.

Objectives and costs

The primary objective of the Phoenix South-3 well is to evaluate the Caley interval that the Phoenix South-2 well drilled into but was unable to drill through and evaluate.

The Phoenix South-3 well design is being constructed to specifically allow for the evaluation of this Caley interval, unlike the Phoenix South-2 well that was designed to evaluate a broader range of reservoir intervals.

The successful control of the increased pressure encountered in the Phoenix South-2 well led Carnarvon and Quadrant to submit cost recovery claims under their respective insurance policies.

These claims are currently in the final stages of assessment by the insurance underwriters.

Proceeds from the claims are expected to cover the majority of the cost of drilling the Phoenix South-3 well.

Strong cash position

Carnarvon remains well-funded with $53 million in cash at the end of June 2017, and with a market cap. of circa $73 million, the enterprise value is just $20 million.

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Tue, 18 Jul 2017 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/181019/carnarvon-petroleum-ltd-s-partner-quadrant-energy-secures-rig-for-phoenix-south-3-181019.html
<![CDATA[News - Carnarvon Petroleum Ltd enters September quarter cashed up ]]> http://www.proactiveinvestors.com.au/companies/news/180486/carnarvon-petroleum-ltd-enters-september-quarter-cashed-up-180486.html Carnarvon Petroleum Ltd (ASX:CVN) has ended the June quarter and will consequently enter the September quarter with a cash balance of $53 million.

During the June quarter, Carnarvon and its joint venture partner advanced multiple work streams in the Phoenix project located offshore from Western Australia.

Of particular note was the work in preparing for drilling the Phoenix South-3 and Dorado-1 wells, development planning for the Roc field and prospect mapping over the greater Phoenix area, using the partnership’s extensive seismic database.

The Phoenix South-3 well is expected to commence in early 2018 with the Phoenix South-2 insurance claim expected to fund most of the cost.

The operator, Quadrant Energy, is in the final stages of evaluating tenders for a semisubmersible rig with a contract expected to be signed shortly.


Project portfolio

Carnarvon holds 12 permits across 5 projects all based off-shore from northern Western Australia.

Details of the five projects includes:

- Phoenix: 4 permits with 20% interest in 2 and 30% interest in 2, operated by Quadrant Energy;
- Labyrinth: 1 permit with 100% interest;
- Buffalo: 1 permit with 100% interest;
- Maracas: 1 permit with 100% interest;
- Outtrim: 1 permit with 28.5% interest, operated by Quadrant Energy; and
- Cerberus: 4 permits with 100% interest.


Phoenix Project

The Phoenix South-3 well, a redrill of the Phoenix South-2 well, is being designed to test the Caley interval.

The structure is estimated to contain a gross mean recoverable prospective resource of 489 billion cubic feet of gas and 57 million barrels of associated condensate.

The Caley interval is also the primary target for the Dorado-1 well which Carnarvon is expecting to commence in mid-2018.

Development work around the discovered gas at Roc was progressed and the joint venture has commenced pre-FEED (Front End Engineering and Design) work aimed at determining the most robust concept for developing both the known hydrocarbons and potential future discoveries.


Labyrinth Project

Carnarvon has completed its interpretation of the newly reprocessed 2D seismic data and has identified a number of significant prospects.

In particular, the Labyrinth and Mouse prospects which are estimated to contain circa 400 million barrels of recoverable oil each at the Pmean confidence level.

Additionally, Carnarvon has identified numerous other high-graded prospects and leads estimated to contain over 1.5 billion barrels of recoverable prospective resource.


Buffalo Project

More data at Buffalo has been collected and processed which has considerably improved the data quality, allowing clearer analysis of key intervals in and around the Buffalo oil field.

As a result, Carnarvon has identified a potentially significant undrilled and unproduced area to the east of the original Buffalo development which was not previously identified.

In addition, Carnarvon joined Northern Oil & Gas Pty Limited (NOGA) on a collaborative data sharing project.

NOGA are the operator of production in the Laminaria oil field less than 10 kilometres from the Buffalo oil field.

The collaboration is aiming to better understand the area and to de-risk potential development opportunities, including the option to bring the Buffalo field back into production.

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Fri, 07 Jul 2017 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/180486/carnarvon-petroleum-ltd-enters-september-quarter-cashed-up-180486.html
<![CDATA[News - Carnarvon Petroleum counts down to drilling of Phoenix South-3 ]]> http://www.proactiveinvestors.com.au/companies/news/180014/carnarvon-petroleum-counts-down-to-drilling-of-phoenix-south-3-180014.html Carnarvon Petroleum (ASX:CVN) has provided an update from partner Quadrant Energy (80% and operator, Carnarvon 20%) on the upcoming drilling program.

The Phoenix South-3 well is being designed as a redrill of the Phoenix South-2 well that discovered gas and condensate at the top of the Caley interval.

The Phoenix South Caley structure is estimated to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate, being 143 million barrels of oil equivalent.

The primary objective of the Phoenix South-3 well is to evaluate the Caley interval.


Dorado-1

Moving on to Dorado-1, this well is targeting multiple stacked reservoirs within the Caley interval. The top sand alone is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 31 million barrels of associated condensate.

The operator had requested and received tenders for a jack-up rig to drill the Dorado-1 well this year.


Roc Development

The joint venture has commenced pre-front end engineering and design work aimed at determining the most robust concept for developing the discovered hydrocarbons in the Phoenix project area.

This work includes detailed reservoir modelling at Roc in order to determine the ideal development of this structure.

Based on this work, the northern extent of the Roc reservoir will be a focus to provide greater certainty on the gas and condensate resource and ultimately support the reclassification of volumes into the more robust Proved category for making a final investment decision.

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Thu, 29 Jun 2017 12:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/180014/carnarvon-petroleum-counts-down-to-drilling-of-phoenix-south-3-180014.html
<![CDATA[News - Carnarvon Petroleum to unlock opportunities with exploration technology ]]> http://www.proactiveinvestors.com.au/companies/news/179714/carnarvon-petroleum-to-unlock-opportunities-with-exploration-technology-179714.html Carnarvon Petroleum (ASX:CVN) is joining with Northern Oil & Gas Australia Pty Limited (NOGA) on a collaborative data sharing project.

Data covers the 100% owned Buffalo block (WA-523-P), and the nearby Corallina and Laminaria producing oil fields, where NOGA is the operator.

All of these exploration assets are based offshore in the Timor Sea.

NOGA, in the adjacent acreage, is rapidly changing the dynamics of its oil production operations.

Both parties believe that by working together they can enhance value in their respective operations.

NOGA is the owner of the Northern Endeavour floating production, storage and offloading (FPSO) facility located some 15 kilometres to the north-west of the Buffalo oil field.

The Northern Endeavour FPSO has processed over 200 million barrels of oil from the adjacent Corallina and Laminaria oil fields.

It is anticipated that similar upside and de-risking of drilling targets to that identified in the Buffalo field may also be unlocked using the same advanced seismic processing techniques.

Carnarvon and NOGA are co-operating to ensure that re-processing of the Laminaria 3D seismic results in a seamless high-quality 3D dataset over the Corallina, Laminaria and Buffalo fields, and Carnarvon’s experience over the Buffalo block will be used by NOGA to fast track their results.

By sharing the data over the Laminaria and Corallina fields, NOGA is able to assist in better understanding the potential available in the Buffalo oil field, and also guide the Carnarvon team on potential development opportunities.

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Fri, 23 Jun 2017 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/179714/carnarvon-petroleum-to-unlock-opportunities-with-exploration-technology-179714.html
<![CDATA[News - Carnarvon Petroleum starts to unravel the Labyrinth ]]> http://www.proactiveinvestors.com.au/companies/news/179114/carnarvon-petroleum-starts-to-unravel-the-labyrinth-179114.html Carnarvon Petroleum (ASX:CVN) has provided an update on the timing and extent of technical work that is being completed on the WA-521-P exploration block, which is known as the Labyrinth project.

The project is located on the North West Shelf offshore Western Australia, in the Rowley Sub-basin.

Labyrinth is positioned north of Carnarvon’s Roc and Phoenix South hydrocarbon discoveries, with water depths between 200 metres and 500 metres.

The Labyrinth and Mouse prospects are estimated to contain ~400 million barrels of recoverable oil each (Pmean), with a total of over 1.5 billion barrels of recoverable prospective resource identified in the block to date.

Adrian Cook, managing director, commented:

"The results from the technical work in this project demonstrate the value of having a strong regional geological understanding.

"The significant volume estimates for the prospects and leads identified to date also make it a very attractive asset in the Carnarvon portfolio."


Analysis

Carnarvon is now uniquely positioned to draw on proprietary data from, and is now on trend with, the successful Roc and Phoenix discoveries in the neighbouring permits.

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Tue, 13 Jun 2017 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/179114/carnarvon-petroleum-starts-to-unravel-the-labyrinth-179114.html
<![CDATA[News - Carnarvon Petroleum updates on Buffalo, in a proven petroleum system ]]> http://www.proactiveinvestors.com.au/companies/news/177782/carnarvon-petroleum-updates-on-buffalo-in-a-proven-petroleum-system-177782.html Carnarvon Petroleum (ASX:CVN) has some wholly-owned interests on Western Australia's North West Shelf, along with some joint ventures.

The Buffalo project is one that Carnarvon 100% owns, and is known as WA-523-P exploration permit, after acquiring the it a year ago by committing to undertake a work program that included the reprocessing the existing 3D seismic data.

The permit is in a proven petroleum system containing the Buffalo oil field that was producing around 4,000 barrels of oil per day when it was shut in.

The permit also contains two proven but undeveloped oil pools at Bluff-1 and Buller-1.

There are also significant oil fields within permits adjoining WA-523-P including the 200 million barrel Laminaria-Corallina field.


Plans for Buffalo

Carnarvon secured the Buffalo project with the objective of:

1. Applying new technology, including Full Wave Inversion processing, to determine if it could overcome historic seismic imaging challenges that severely compromised the legacy oil field development and exploration efforts; and

2. If successful, use the improved data to identify new oil targets in this proven and prolific oil field region.

The reprocessing has recently been completed with impressive improvements in data quality.

Carnarvon said that the resulting data produces a significantly clearer definition of the key zones relevant for prospect identification.


Next steps

Carnarvon recently commenced interpreting the data to more accurately map the Buffalo field and the two discoveries at Bluff-1 and Buller-1.

This work will extend to other undrilled structures in the permit to mature a portfolio of targets for further assessment.

Once this work has been completed, and provided it supports prospective targets warranting drilling, Carnarvon will then seek a partner or partners to participate in the drilling activities.

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Mon, 15 May 2017 14:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177782/carnarvon-petroleum-updates-on-buffalo-in-a-proven-petroleum-system-177782.html
<![CDATA[News - Carnarvon Petroleum receives government approval at Cerberus ]]> http://www.proactiveinvestors.com.au/companies/news/177417/carnarvon-petroleum-receives-government-approval-at-cerberus-177417.html Carnarvon Petroleum (ASX:CVN) has had its application to suspend and extend the year three work commitments approved at the Cerberus Project located offshore Western Australia.

The 100% owned Cerberus Project is comprised of the EP-490, EP-491, TP/27 and EP-475 exploration blocks in the North West Shelf offshore Western Australia.

The approval will allow Carnarvon sufficient time to prepare to drill a contingent well in 2018 and complete the necessary efforts to secure a partner to help fund the necessary exploration drilling.

The 2018 drilling will be contingent upon Carnarvon agreeing to enter into the next commitment year in May 2018.

This has also allowed the EP-490, EP-491 and TP/27 exploration permits to be aligned with the drilling commitments in the EP-475 exploration block.


Cerberus Project

The Cerberus blocks cover a 3,700 square kilometre area in the heartland of the prolific Northern Carnarvon Basin, relatively close to a number of producing oil and gas fields.

Nine prospects within the project contain 624 million barrels of prospective recoverable oil.

Recent technical work has highlighted the existence of a lower Triassic play within the Cerberus blocks which significantly de-risks their potential.

Further prospective resources have been outlined in a number of other leads within the exploration blocks, consisting of a number of different petroleum plays.

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Mon, 08 May 2017 15:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177417/carnarvon-petroleum-receives-government-approval-at-cerberus-177417.html
<![CDATA[News - Carnarvon Petroleum to receive funds from deferred consideration agreement ]]> http://www.proactiveinvestors.com.au/companies/news/177114/carnarvon-petroleum-to-receive-funds-from-deferred-consideration-agreement-177114.html Carnarvon Petroleum (ASX:CVN) has entered into an agreement with Loyz Oil Thailand Pte Ltd to settle the deferred consideration payable to Carnarvon by Loyz.

The deferred consideration will be settled by a lump sum payment of US$4 million (A$5.3 million) which is payable to Carnarvon by 30 June 2017.

In addition to this, Carnarvon is entitled to 12% of any sale proceeds over US$45 million, should Loyz sell the asset in the future.

Adrian Cook, managing director for Carnarvon, commented:

“We saw this as a tremendous opportunity to draw forward an additional US$4 million and strengthen the Company’s cash position at important time for Carnarvon.

"In making the decision to enter the settlement agreement, we were mindful of the financial position of Loyz and the fact that Carnarvon is planning to drill two incredibly significant wells in the next twelve months, namely Dorado-1 and Phoenix South-3."

"A more robust balance sheet leading into this period gives us greater optionality and financial strength to cater for a broader range of outcomes, most particularly in the success case."


If Loyz unable to settle

In a situation where Loyz is unable to settle some or all of the US$4 million by 30 June 2017, it is obligated to satisfy the balance through the issue of shares in the Singapore listed parent of Loyz Oil Thailand Pte Ltd, namely Loyz Energy Limited.


Dorado-1

Planning has commenced on the Dorado-1 exploration well that is targeting 545 bscf of gas and 31 million barrels of condensate (that is 127 mmboe).

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Tue, 02 May 2017 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177114/carnarvon-petroleum-to-receive-funds-from-deferred-consideration-agreement-177114.html