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Carnarvon Petroleum upgrades prospective resource at the Labyrinth project

The company's shares are trading 13% higher intra-day, at $0.13.
project map
Cash position of circa $50 million as at December 31, 2017

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

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