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.
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.
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.