Sign up Australia
Proactive Investors - Run By Investors For Investors

Carnarvon Petroleum Ltd's partner Quadrant Energy secures rig for Phoenix South-3

Quadrant (80%) is the operator, and Carnarvon holds 20%.
Carnarvon Petroleum Ltd's partner Quadrant Energy secures rig for Phoenix South-3
The GSF Development Driller-1

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.

View full CVN profile View Profile

Carnarvon Petroleum Ltd Timeline

Related Articles

oil and gas operations
January 30 2018
Chief executive Matthew Idiens described the initial seismic results as “a watershed moment” for Rose
oil and gas operations
December 13 2017
Falcon is sitting on a major shale discovery in the Beetaloo basin, but, it is waiting for the Northern Territory to green-light fracking - with a decision expected next year.
Iodine plant
September 15 2017
Shares in the AIM-listed group soared 20% higher on Tuesday after it said the new IO#7 plant will be based around its existing IO#3 operations in Oklahoma - hitherto Iofina’s highest cost per kilo plant

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use