Carnarvon Petroleum Limited (ASX:CVN) expects to encounter gas and condensate in the primary Caley Member shortly as the Phoenix South-3 well goes beyond 5,210 metres measured depth (MD).
This well is the first to be drilled at the Phoenix project in the Canning Basin offshore Western Australia by Carnarvon and its partner and project operator Quadrant Energy.
Success at the second well, Dorado-1, has seen Carnarvon’s price surge to a 12-month high of 52 cents this week, up from 14 cents on July 11.
At Phoenix South-3 the 7-5/8 inch liner has been set and cemented in place down to around 5,205 metres MD with the well drilling ahead at around 5,210 MD.
Carnarvon and Quadrant expect the Caley Member to be encountered in this section of the well and will continue drilling ahead to a depth of about 5,500 metres MD.
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.
This well encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.
Well is optimally designed
Phoenix South-3 well, which is about 560 metres NNE of Phoenix South-2, has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the member.
The well plan and its associated procedures employ controlled drilling operations prior to and during the drilling of the reservoir section.
Consequently, drilling progress is slower than that previously experienced in the other wells in the Phoenix project.
The well 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 equal to 143 million barrels of oil equivalent.