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.