Proactiveinvestors Australia Carnarvon Petroleum Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Carnarvon Petroleum Ltd RSS feed en Sun, 16 Dec 2018 00:47:22 +1100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Carnarvon Petroleum bringing both Dorado and Buffalo oilfields into production ASAP ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11447/carnarvon-petroleum-bringing-both-dorado-and-buffalo-oilfields-into-production-asap-11447.html Wed, 05 Dec 2018 14:19:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11447/carnarvon-petroleum-bringing-both-dorado-and-buffalo-oilfields-into-production-asap-11447.html <![CDATA[News - Carnarvon Petroleum secures jack-up drill rig for appraisal program at Dorado discovery ]]> https://www.proactiveinvestors.com.au/companies/news/210428/carnarvon-petroleum-secures-jack-up-drill-rig-for-appraisal-program-at-dorado-discovery-210428.html Carnarvon Petroleum Ltd (ASX:CVN) has secured a Noble Tom Prosser jack-up drilling rig for two appraisal wells at the Dorado joint venture oil, gas and condensate discovery offshore Western Australia.

Shallow water depths in this part of the Canning Basin on the North West Shelf mean that the joint venture can utilise a cost-effective jack-up rig for its appraisal wells.

READ: Carnarvon Petroleum has strong potential to add to oil bounty of Dorado-1

The 2019 drilling program is expected to include two appraisal wells with the first expected to begin around April.

Carnarvon managing director Adrian Cook said: “The incredible Dorado discovery earlier this year means we are highly motivated to appraise the oil, gas and condensate within the structure.

“The objective in 2019 is to enhance our understanding of the volume of the resources recoverable and move to making a final investment decision for development ideally in 2020.”

Noble Tom Prosser rig used at Roc-1

The Noble Tom Prosser rig was also used to drill the Roc-1 discovery in this area in 2016.

Joint venture partners in the Dorado exploration permit are Carnarvon with 20% and operator Santos Ltd (ASX:STO) with 80%.

Aims of appraisal wells

One aim of the appraisal wells is to focus on gaining further information on the volume of oil, gas and condensate discovered in the Dorado-1 well to build proved reserves which will underpin the Dorado development.

Another is to determine the flow properties of those hydrocarbons from the reservoirs intersected in order to optimise the Dorado development.

The third is to obtain additional data at different locations within the Dorado field.

READ: Carnarvon Petroleum focusing on four key areas

Carnarvon’s four key areas of focus for its business are:

1. Continuing with its business model and maturing new plays that farm-in partners find appealing;

2. Appraising the Dorado oil, gas and condensate discovery so that it is in a position to make a final investment decision on development by 2020;

3. Progressing the Buffalo oil field re-development project to bring that into production within a reasonable timeframe; and

4. Managing capital and financing so that the company is able to deliver an appropriate return to shareholders.

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Tue, 04 Dec 2018 10:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210428/carnarvon-petroleum-secures-jack-up-drill-rig-for-appraisal-program-at-dorado-discovery-210428.html
<![CDATA[News - Carnarvon Petroleum focusing on four key areas ]]> https://www.proactiveinvestors.com.au/companies/news/209045/carnarvon-petroleum-focusing-on-four-key-areas-209045.html Carnarvon Petroleum Ltd (ASX:CVN) at its recent annual general meeting (AGM) confirmed that there were four key areas of focus for its business.

1. Continuing with our business model and maturing new plays that farm in partners find appealing;
2. Appraising the Dorado oil, gas and condensate discovery so that we’re in a position to make a final investment decision (FID) on development by 2020;
3. Progressing our Buffalo oil field re-development project to bring that into production within a reasonable timeframe; and
4. Managing our capital and financing so that we’re able to deliver an appropriate return to shareholders.

READ: Carnarvon Petroleum has strong potential to add to oil bounty of Dorado-1

Carnarvon’s managing director Adrian Cook said in a letter to shareholders: “The Dorado well has discovered a mixture of oil and gas with condensate and it’s important to understand that the different hydrocarbon types are compatible from a development point of view, and are able to be developed in conjunction with the nearby Roc discovery.

“From the hydrocarbon samples recovered from Dorado we are also not seeing material amounts of unwanted components such as sulphur, mercury or carbon dioxide in the fluids tested to date so the hydrocarbons look appealing as the world focuses on cleaner energy sources."

Dorado discovery warrants 2019 drilling

Carnarvon noted the Dorado result definitely warrants appraisal drilling in 2019 and it aims to assess the extent of the resources through two wells.

The company is particularly focused on the oil in the Caley interval to see if it can bring that into production in a timely manner which may be prior to gas production and sales.

Developing the oil in the Caley would have a lower capital cost and generate earlier cash flows that could facilitate a larger field development capturing the remaining oil, gas and condensate.

READ: Carnarvon Petroleum director increases shareholding through on-market trades

Cook also said in his letter: “The Board and management are incredibly excited about building on our value and share price through maturing our discovered resources to reserves and then producing oil, gas and condensate and discovering more hydrocarbons in and around Dorado and further within our broader portfolio of assets.”

What Carnarvon aims to achieve in 2019

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Tue, 13 Nov 2018 09:03:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209045/carnarvon-petroleum-focusing-on-four-key-areas-209045.html
<![CDATA[News - Carnarvon Petroleum director increases shareholding through on-market trades ]]> https://www.proactiveinvestors.com.au/companies/news/208574/carnarvon-petroleum-director-increases-shareholding-through-on-market-trades-208574.html Carnarvon Petroleum Ltd (ASX:CVN) director Peter Moore has purchased 50,000 shares through on-market trades for a total consideration of $17,679.

The purchase increase Moore’s holding in the company to 320,232 shares and 500,000 unlisted options.

READ: Carnarvon Petroleum has strong potential to add to oil bounty of Dorado-1

Carnarvon recently completed a positive initial assessment of follow-up prospects to the highly successful oil discovery at the Dorado-1 well offshore Western Australia.

Three prospects – Roc South, Pavo and Apus – have been estimated to contain significant quantities of oil, gas and condensate.

Dorado-1, for which volumetric results estimate a gross contingent resource of 283 million barrels of oil equivalent (MMboe), including 171 million barrels of light oil, has unlocked a new play type.

READ: Carnarvon Petroleum plans to drill Buffalo oilfield redevelopment taking shape

Carnarvon is also advancing plans to drill the Buffalo oilfield redevelopment project in Timor-Leste territorial waters in the third quarter of 2019.

Last month the company mobilised a team to undertake field surveillance in the area of the proposed redevelopment.

This work was carried out to determine potential future surface locations for wells, the platform and flowline to a Floating Production, Storage and Offloading vessel (FPSO).

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Tue, 06 Nov 2018 13:42:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208574/carnarvon-petroleum-director-increases-shareholding-through-on-market-trades-208574.html
<![CDATA[News - Carnarvon Petroleum has strong potential to add to oil bounty of Dorado-1 ]]> https://www.proactiveinvestors.com.au/companies/news/207029/carnarvon-petroleum-has-strong-potential-to-add-to-oil-bounty-of-dorado-1-207029.html Carnarvon Petroleum Limited (ASX:CVN) has completed a positive initial assessment of follow-up prospects to the recent highly successful oil discovery at Dorado-1 offshore Western Australia.

Three prospects – Roc South, Pavo and Apus – have been estimated to contain significant quantities of oil, gas and condensate.

Dorado-1, for which volumetric results estimate a gross contingent resource of 283 million barrels of oil equivalent (MMboe), including 171 million barrels of light oil, has unlocked a new play type.

READ: Carnarvon Petroleum progressing one of the largest oil resources ever found on the North West Shelf

Investors responded initially with shares up almost 8% at the opening to 42 cents.

Work by Carnarvon and project partner Quadrant Energy since the Dorado-1 discovery has included assessment of other prospects.

These are in multiple stacked, high-quality sandstone reservoirs set-up and trapped by what is now known to be a shale filled channel ‘Dorado Canyon’.

Preliminary mapping of the extent of this canyon, and the similar Apus Canyon, identified numerous other prospects that have been significantly de-risked due to the success of the Dorado-1 well.

Three key, nearby prospects have been further evaluated and volumetric and risking analysis undertaken.

Prospect estimates with net volumes pertaining to CVN’s interest in the gross figures.

Data collected from Dorado-1 has been extensively used to evaluate the potential of the nearby prospects, and the range of net reservoirs and column heights interpreted for the Dorado-1 well have been used to constrain the parameters.

READ: Carnarvon Petroleum welcomes Santos move on joint venture partner Quadrant

The high quality of the Dorado reservoirs, with porosities averaging around 20% for the Caley reservoir, combined with the quality of the light oil (around 50⁰ API) has meant that prospective resources have been estimated to have high recovery factors averaging around 43%.

Roc South estimate

Roc South prospect appears to be a very similar trap to Dorado, being similarly situated up-dip of the Roc discoveries and relying on the Dorado Canyon for sealing and setting up the prospect.

Recoverable oil from this prospect is estimated at 56 million barrels (gross Pmean).

Reservoir packages are expected to be thicker compared to Dorado, although the smaller areal extent means overall volumes are anticipated to be smaller than Dorado.

Roc South prospect is on trend and in close vicinity to Dorado.

Given the very similar seismic characteristics between Dorado and Roc South, and what is anticipated to be an identical oil sourcing mechanism, the Roc South prospect has a relatively high chance of geological success.

READ: Carnarvon Petroleum plans to drill Buffalo oilfield redevelopment taking shape

With the Roc South crest being around 13 kilometres from the Dorado structure crest, and the two structures even closer at lower levels, drilling success at Roc South would naturally lead to this structure being developed along with Dorado.

Pavo estimate

The Pavo structure is around 40 kilometres from Dorado and analysis suggests that this trap consists of a single reservoir layer, leading to a more modest potential size of 82 million barrels of oil (Pmean, gross).

Given the proximity to a well drilled by previous permit holders, Keraudren-1, the technical attributes of this prospect are better known and hence this well has a higher geological chance of success.

Keraudren-1 encountered the Hove seal and below 100s of metres of high porosity and permeable sands and as such is unlikely to have stacked sands like Dorado.

Hence the estimated volumes are calculated at one single Caley level only.

A number of reservoirs at Apus

Similar to Dorado, which is only a few kilometres away, Apus prospect comprises a number of potential stacked reservoirs in the Caley, Baxter, Crespin and Milne sands over a considerable area.

Trapping mechanisms of the Apus trap.

When the individual sands are arithmetically added, the mean recoverable volume of oil of 612 million barrels (gross) is substantial.

The Apus reservoirs are trapped by the Hove seal and Apus Canyon, with oil being potentially sourced from below the Dorado Canyon.

Strong interest expected

Dorado and these three prospects are expected to attract significant joint venture focus in 2019 and 2020.

These estimated quantities of petroleum that may potentially be recovered by the application of a future development project relate to undiscovered accumulations.

The estimates have an associated risk of discovery and risk of development with further exploration, appraisal and evaluation required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

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Mon, 15 Oct 2018 12:37:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207029/carnarvon-petroleum-has-strong-potential-to-add-to-oil-bounty-of-dorado-1-207029.html
<![CDATA[News - Carnarvon Petroleum plans to drill Buffalo oilfield redevelopment taking shape ]]> https://www.proactiveinvestors.com.au/companies/news/206623/carnarvon-petroleum-plans-to-drill-buffalo-oilfield-redevelopment-taking-shape-206623.html Carnarvon Petroleum Limited (ASX:CVN) is advancing plans to drill the Buffalo oilfield redevelopment project in Timor-Leste territorial waters in the third quarter of 2019.

Last week the company mobilised a team to undertake field surveillance in the area of the proposed redevelopment.

This work was carried out to determine potential future surface locations for wells, the platform and flowline to a Floating Production, Storage and Offloading vessel (FPSO).

The Buffalo field layout schematic.

No impediments to proposed well locations

Data from the survey indicates that there are no impediments to locating the wells in the surface locations most ideal for targeting the identified attic of oil.

Additional analysis is continuing to be being undertaken by the company.

READ: Carnarvon Petroleum progressing one of the largest oil resources ever found on the North West Shelf

Carnarvon is also exploring the Dorado and Phoenix projects at the southern end of the North West Shelf offshore Western Australia with this work attracting plenty of attention.

As part of Buffalo preparations, Carnarvon has submitted an environmental plan for the drilling of up to three wells in the field.

Preparations also involve engaging with the governments of  Australia and Timor-Leste to be able to drill a well in the Timor-Leste jurisdiction.

READ: Carnarvon Petroleum welcomes Santos move on joint venture partner Quadrant

Carnarvon was awarded the WA-523-P acreage in May 2016, including the previously developed Buffalo field, for an initial six-year term.

The field was discovered by BHP in 1996 and developed using four wells drilled from a small, unmanned wellhead platform installed in 25 metres water depth, tied back to an FPSO.

Production began in December 1999 at daily rates up to about 50,000 stock tank barrels (stb) of highly-undersaturated, light oil (53°API) from the Jurassic-age Elang Formation.

It ended in November 2004 after the production of 20.5 million stb with all existing facilities and wells decommissioned and removed before Carnarvon was awarded the block.

Seismic dataset reprocessed

Carnarvon initially focused on reprocessing of the 3D seismic dataset using state-of-the-art full waveform inversion (FWI) technology.

This supports the interpretation of a significant attic oil accumulation remaining after the original development.

Buffalo represents a low-risk oil field redevelopment.

Reservoir modelling has been conducted using the latest structural interpretation and available well data.

This included an extensive history-matching effort to calibrate model/well performance to production rates and water-cut development (governed by strong aquifer drive) observed during the original production period.

“Economically compelling”

Carnarvon believes the project appears economically compelling based on its preliminary mean recoverable volume of 31 million barrels, which has been reviewed by leading independent consulting firm RISC.

To emphasise the scale of this project, at today’s oil price Buffalo would generate a revenue of more than $3 billion over a project life of a few years.

The proposed Buffalo wellhead platform.

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Tue, 09 Oct 2018 12:28:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206623/carnarvon-petroleum-plans-to-drill-buffalo-oilfield-redevelopment-taking-shape-206623.html
<![CDATA[News - Carnarvon Petroleum progressing one of the largest oil resources ever found on the North West Shelf ]]> https://www.proactiveinvestors.com.au/companies/news/203938/carnarvon-petroleum-progressing-one-of-the-largest-oil-resources-ever-found-on-the-north-west-shelf-203938.html Carnarvon Petroleum Limited (ASX:CVN) is witnessing significant interest from media, shareholders and the broader market in its recent drilling and operational activities.

The company’s share price recently rose to more than 60 cents, a fivefold increase since February 2018.

There are a number of upcoming share price catalysts over the next 12-18 months

READ: Carnarvon Petroleum Dorado discovery “one of the largest oil resources ever found on the North West Shelf”

Carnarvon’s Dorado discovery (20% interest) in the North West Shelf offshore Western Australia was the breakthrough result that the company was seeking.

Volumetric results estimate gross contingent resource of 283 million barrels of oil equivalent (MMboe), including 171 million barrels of light oil.

It is a large and exciting outcome that is expected to be central to the commercialisation of the oil and gas resources in this region.

Carnarvon’s net contingent resources of 108 MMboe are conventional shallow water discoveries

Buffalo Project (100% CVN)

A project that the company is equally excited about, but that has attracted far less investor attention so far, is the Buffalo Project in Timor-Leste territorial waters.

The project appears economically compelling based on Carnarvon’s preliminary mean recoverable volume of 31 million barrels, which has been reviewed by leading independent consulting firm RISC.

READ: Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well

To emphasise the scale of this project, at today’s oil price this project would generate a revenue of more than $3 billion over a project life of a few years.

Carnarvon is progressing discussions with the Timor-Leste Government, with whom the company is having a constructive and supportive dialogue and have set up a representative office in the capital Dili.

Carnarvon’s large portfolio is located across the North West Shelf in proven oil and gas fairways

Forward plan

The Dorado discovery proves a play type that has a number of follow-on targets to consider. Carnarvon is currently refining these and will update the market soon.

While the Dorado and Phoenix South wells have been the focus recently, Carnarvon is also advancing its 100% held Buffalo oil field redevelopment project.

A central piece to this is the progression of the new production sharing contract.

Teams from Carnarvon and the Australian and Timor-Leste Governments have been working diligently on this task and appear to be making solid progress.

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Fri, 31 Aug 2018 13:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203938/carnarvon-petroleum-progressing-one-of-the-largest-oil-resources-ever-found-on-the-north-west-shelf-203938.html
<![CDATA[News - Carnarvon Petroleum to relate its oil and gas story at Proactive CEO Sessions ]]> https://www.proactiveinvestors.com.au/companies/news/203618/carnarvon-petroleum-to-relate-its-oil-and-gas-story-at-proactive-ceo-sessions-203618.html Carnarvon Petroleum Limited (ASX:CVN) has had plenty of news to share of late resulting in shares surging to a new 12-month high of 69.5 cents early this month.

This makes next month’s Proactive CEO Sessions a must-attend for investors interested in the company and its oil and gas strategy.

READ: Carnarvon Petroleum’s oil exploration strategy continues to generate significant shareholder value

Carnarvon’s managing director Adrian Cook will inform investors about latest developments at the Dorado-1 and Phoenix South-3 wells of its Phoenix joint venture project on the North West Shelf.

He will also talk about plans for the Buffalo project in Timor-Leste territorial waters.

This project appears economically compelling based on Carnarvon’s preliminary mean recoverable volume of 31 million barrels, which has been reviewed by leading independent consulting firm RISC.

 

It is the oil discovery at Dorado-1 well that has spurred strong investor interest.

This has now been confirmed as the third largest discovery in the history of the North West Shelf.

Leading oil and gas consultancy firm Wood Mackenzie puts the Dorado 2C contingent oil resource of 171 million barrels of oil behind the Barrow Island and Wanaea resources.

Very few junior ASX-listed oil and gas companies have participated in a discovery of this magnitude.

Managing director Adrian Cook.

Carnarvon holds a 20-30% interest in the four associated permits that comprise the Phoenix project, including the Dorado, Roc and Phoenix South discoveries.

READ: Carnarvon Petroleum welcomes Santos move on joint venture partner Quadrant

The company has welcomed the potential acquisition of its Phoenix project joint venture partner Quadrant Energy by major oil industry player Santos Limited (ASX:STO), a highly experienced oil and gas player.

Santos intends to acquire 100% of Quadrant, including the 70-80% interest in the Phoenix project, for cash consideration of US$2.15 billion in addition to contingent payments and royalties.

Carnarvon said it had good relations with Santos and shared that company’s enthusiasm for the Phoenix project and its willingness to quickly commercialise recent discoveries including Dorado.

Register today to find out more.

Sydney details, Monday, September 17, 2018

Melbourne details, Tuesday, September 18, 2018

Or call John Phillips on (02) 9280 0700

The Proactive CEO Sessions will feature five presenting companies in total.

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Mon, 27 Aug 2018 15:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203618/carnarvon-petroleum-to-relate-its-oil-and-gas-story-at-proactive-ceo-sessions-203618.html
<![CDATA[News - Carnarvon Petroleum welcomes Santos move on joint venture partner Quadrant ]]> https://www.proactiveinvestors.com.au/companies/news/203437/carnarvon-petroleum-welcomes-santos-move-on-joint-venture-partner-quadrant-203437.html Carnarvon Petroleum Limited (ASX:CVN) has welcomed the potential acquisition of its Phoenix project joint venture partner Quadrant Energy by major oil industry player Santos Limited (ASX:STO).

Under the proposed deal, Santos will acquire 100% of Quadrant, including the 70-80% interest in the Phoenix project, for cash consideration of US$2.15 billion in addition to contingent payments and royalties.

Third largest North West Shelf discovery

News of the Santos move comes as Carnarvon has received confirmation that the recent oil discovery at Dorado-1 is the third largest discovery in the history of the North West Shelf.

Leading oil and gas consultancy firm Wood Mackenzie puts the Dorado 2C contingent oil resource of 171 million barrels of oil behind the Barrow Island and Wanaea resources.

Very few junior ASX-listed oil and gas companies have participated in a discovery of this magnitude.

READ: Carnarvon Petroleum Dorado discovery “one of the largest oil resources ever found on the North West Shelf”

Carnarvon holds a 20-30% interest in the four associated permits that comprise the Phoenix project, including the Dorado, Roc and Phoenix South discoveries.

The company said it had good relations with Santos, a highly experienced oil and gas exploration and production company, and looked forward to progressing the Phoenix project together.

It said that it shared the enthusiasm shown by Santos in relation to the Phoenix project and the willingness to quickly commercialise the recent discoveries including Dorado.

 

Santos has not stated what proportion of the upfront consideration was applied to the Phoenix project area.

Accordingly, it is not possible to ascertain the consideration applicable and, therefore, the look through value associated with the project.

Carnarvon intends to shortly provide further details on prospects identified by the play concept now proven at Dorado, that it believes have potential to add to the contingent oil resource.

Overlap with Quadrant portfolio

In a statement on Wednesday, Santos said there was considerable overlap with the Quadrant portfolio.

This “provides combination synergies estimated at US$30-50 million per annum” along with “opportunities to leverage Quadrant’s offshore operating capability across Santos’ Western Australia and Northern Australia portfolio”.

READ: Carnarvon Petroleum’s oil exploration strategy continues to generate significant shareholder value

Quadrant holds natural gas and oil production, near and medium-term development, appraisal and exploration assets across more than 52,000 square kilometres of acreage.

This is predominantly in the Carnarvon Basin offshore WA, Australia’s largest offshore oil and natural gas province.

Quadrant’s portfolio includes a large inventory of discovered resources to backfill existing infrastructure and a leading position in the highly prospective Bedout Basin, including the Dorado discovery.

“Near-term development opportunity”

Santos said this “provides near-term development opportunity and unlocks material exploration potential”.

Quadrant is held directly or indirectly by Brookfield Asset Management (36.2%), Macquarie

Capital (21.8%), Wesfarmers Ltd (ASX:WES) (13.2%), AMB Holdings (13.2%), Canadian institutional investor CDPQ (12.1%) and Quadrant management (3.4%).

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Thu, 23 Aug 2018 11:05:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203437/carnarvon-petroleum-welcomes-santos-move-on-joint-venture-partner-quadrant-203437.html
<![CDATA[News - Carnarvon Petroleum Dorado discovery “one of the largest oil resources ever found on the North West Shelf” ]]> https://www.proactiveinvestors.com.au/companies/news/203178/carnarvon-petroleum-dorado-discovery-one-of-the-largest-oil-resources-ever-found-on-the-north-west-shelf-203178.html Carnarvon Petroleum Limited (ASX:CVN) confirms that the discovery of 171 million barrels of oil within the Dorado structure “is one of the largest oil resources ever found on the North West Shelf.”

The company’s managing director Adrian Cook adds: “Oil fields of this significant scale are not often found, with the last large field discovery on the North West Shelf being around 30 years ago.”

READ: Carnarvon Petroleum’s oil exploration strategy continues to generate significant shareholder value

Carnarvon and Phoenix project joint venture partner Quadrant Energy have completed an assessment of the hydrocarbon volumes within the Dorado structure as found by the Dorado-1 well offshore Western Australia.

Cook said: “It is common for additional resources to be discovered in the surrounding area after a large discovery.

“In this regard, we expect to provide the market with further details on prospects identified by the play concept now proven at Dorado, that we believe have the potential to also contain oil resources.

“The gas and condensate discovered in the Phoenix project is also is a significant and valuable resource that is in addition to the discovered oil,” Cook said.

 

The partners have assessed that there is 552 billion cubic feet (bcf) of gas and 16 million barrels of condensate on a 2C basis at Dorado.

“When combined with the nearby Roc field, the aggregate resource is around 884 billion cubic feet of gas and 36 million barrels of associated condensate on a gross 2C basis,” he said.

“These volumetric results reiterate the significance of the Dorado discovery and we look forward to maturing this resource and finding additional neighbouring resources in our future drilling programs.”

READ: Carnarvon Petroleum shares surge following additional oil discoveries

The contingent resources in the Roc field are 332 bcf of gas and 20 million barrels of condensate.

Contingent resources have been calculated using deterministic and statistic volumetric methods.

These are based on the interpretation of porosity, hydrocarbon saturation and net reservoir thickness from the wireline logging program, and analysis of potential hydrocarbon columns from the pressure data and the fluid properties.

Carnarvon’s 20% share of gross contingent resources within the Dorado structure.

They are derived from the oil, gas and condensate samples and applied to the structure map with recovery factors calculated using analogues and industry standards.

The contingent resources have been aggregated by arithmetic summation and hence the aggregate 1C may be a very conservative estimate and the 3C may be a very optimistic estimate due to the portfolio effects of arithmetic summation.

These are classified as contingent resources according to Society of Petroleum Engineers’ Petroleum Resource Management System guidelines as the potential development concept has not yet been finalised or sanctioned.

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Mon, 20 Aug 2018 11:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203178/carnarvon-petroleum-dorado-discovery-one-of-the-largest-oil-resources-ever-found-on-the-north-west-shelf-203178.html
<![CDATA[Media files - Carnarvon Petroleum will report Dorado volumetric estimates "in next couple of weeks" ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10110/carnarvon-petroleum-will-report-dorado-volumetric-estimates-in-next-couple-of-weeks--10110.html Wed, 15 Aug 2018 08:31:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10110/carnarvon-petroleum-will-report-dorado-volumetric-estimates-in-next-couple-of-weeks--10110.html <![CDATA[News - Carnarvon Petroleum’s oil exploration strategy continues to generate significant shareholder value ]]> https://www.proactiveinvestors.com.au/companies/news/202803/carnarvon-petroleums-oil-exploration-strategy-continues-to-generate-significant-shareholder-value-202803.html Carnarvon Petroleum Limited (ASX:CVN) is witnessing significant interest from media, shareholders and the broader market in its recent drilling and operational activities.

The company’s share price has surged to 46 cents, an increase of 156% since July 13, 2018.

Background

In 2013, Carnarvon refined its strategic focus, making a decision to divest its onshore Thailand oil production assets and other Asian interests to concentrate on Australian investments.

In two transactions, Carnarvon divested its interest in these assets, realising in excess of $100 million in proceeds before the drop in oil prices at the end of 2014.

In refining its strategic focus, the company decided Australia’s North West Shelf represented a logical, manageable and compelling area of focus.

Fortuitously, the significant drop in the oil price from 2014 to 2017 caused discretionary exploration to be largely curtailed by most upstream companies.

Oil price chart 

With a strong cash position and an industry in retreat, Carnarvon secured and progressed new projects with its inhouse geoscience team.

A further benefit of this point in the cycle was that significantly reduced rig rates were negotiated, compared to earlier years, and Carnarvon was one of the most active in drilling wells throughout the bottom of the cycle.

Phoenix Blocks (predominantly CVN 20% working interest)

The Phoenix Blocks in the North West Shelf offshore Western Australia represent one such area of focus.

Following the recent completion of the Dorado-1 and Phoenix South-3 wells, Carnarvon and its joint venture partner will have drilled six wells in this sub-basin, with hydrocarbons discovered in each well.

The Dorado-1 well was one of the higher risk exploration targets considered by the joint venture, and the decision to drill was taken because of the large geological structure (i.e. potential for large volumes of hydrocarbons) and the low drilling cost relative to the potential reward.

The joint venture has now announced that the well encountered about 120 metres of net oil pay.

 

Both the light oil recovered in the wireline testing and the indicative quality of the reservoir point to a highly valuable discovery.

The commerciality of this will be assessed in time, but it is the oil in Dorado and potentially successful adjacent structures that will now become our immediate focus.

Carnarvon expects this to be highly profitable for shareholders in due course.

Buffalo Project (100% CVN)

A project that the company is equally excited about, but that has attracted far less investor attention so far, is the Buffalo Project in Timor-Leste territorial waters.

The project appears economically compelling based on Carnarvon’s preliminary mean recoverable volume of 31 million barrels, which has been reviewed by leading independent consulting firm RISC.

READ: Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well

To emphasise the scale of this project, at today’s oil price this project would generate a revenue of more than $3 billion over a project life of a few years.

Carnarvon is progressing discussions with the Timor-Leste Government, with whom the company is having a constructive and supportive dialogue and have set up a representative office in the capital Dili.

Forward plan

The Dorado result is a truly spectacular discovery and Carnarvon is expected to report on the volumetric estimates in the next couple of weeks.

The Buffalo project remains an ideal oil field redevelopment and the company is making good progress with this asset.

Carnarvon’s share price has seen significant volatility over July and August.

As speculators move off Carnarvon’s register and are replaced by institutions seeking medium-term exposure to two quality oil projects, the volatility is expected to make way for a phase of sustained growth.

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Tue, 14 Aug 2018 12:19:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202803/carnarvon-petroleums-oil-exploration-strategy-continues-to-generate-significant-shareholder-value-202803.html
<![CDATA[News - Carnarvon Petroleum reveals Phoenix South-3 well wireline evaluation results ]]> https://www.proactiveinvestors.com.au/companies/news/202703/carnarvon-petroleum-reveals-phoenix-south-3-well-wireline-evaluation-results-202703.html Carnarvon Petroleum Limited (ASX:CVN) has completed the wireline evaluation program through the Caley Member on its Phoenix South-3 (PS-3) well.

Hydrocarbons were observed from around 5,173 metres depth to the lowest closing contour at around 5,304 metres depth within the Caley interval.

This range indicates a significant gross column of hydrocarbons of 131 metres were encountered in the well.

Potential for a larger overall hydrocarbon column

Since the well was targeting the Caley Member some 80 metres below the crest of the structure there is potential for a larger overall hydrocarbon column.

The net reservoir from wireline logging was interpreted by Carnarvon to be around 16 metres with an average porosity of 8%.

The sampling program was unable to extract hydrocarbons and hence determine the exact nature of the fluids encountered.

Further analysis in the coming months

The results from wireline logging, including the sampling program, indicate the permeabilities are in the lower end of the range of expectations and evaluation of the reservoir core samples extracted are required to determine if the reservoir is capable of flowing at commercial rates.

Analysis of these cores is expected to take a number of months as will the assessment of any contingent resources.

The rig is in the process of finalising well operations and following which the drilling rig will be released.

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Mon, 13 Aug 2018 11:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202703/carnarvon-petroleum-reveals-phoenix-south-3-well-wireline-evaluation-results-202703.html
<![CDATA[News - Carnarvon Petroleum intersects porous sandstone in Phoenix South-3 well ]]> https://www.proactiveinvestors.com.au/companies/news/202532/carnarvon-petroleum-intersects-porous-sandstone-in-phoenix-south-3-well-202532.html Carnarvon Petroleum Ltd (ASX:CVN) has drilled the offshore Phoenix South-3 well from around 5,210 metres to around 5,393 metres measured depth through the Caley Member.

While drilling through the Caley Member, a number of sandstone intervals were encountered from 5,200 metres to 5,300 metres that were interpreted to be porous.

Elevated gas readings and increased resistivity were observed across these sandstone intervals that indicate the presence of hydrocarbons.

Wireline logging to be undertaken

The positive observations in this section of the well now warrant wireline logging which will be undertaken from 5,200 metres o 5,393 metres.

The aim is to obtain more definitive results regarding the nature of the hydrocarbons (oil, gas and condensate) and the characteristics of the reservoir within the 5,200-5,300 metre zone.

READ: Carnarvon Petroleum shares surge following additional oil discoveries

The Phoenix South-3 well is one of two offshore wells being drilled by project partner and operator Quadrant Energy.

Recent discoveries at the nearby Dorado-1 well have sent the Carnarvon share price soaring, last trading at 63 cents.

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Thu, 09 Aug 2018 09:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202532/carnarvon-petroleum-intersects-porous-sandstone-in-phoenix-south-3-well-202532.html
<![CDATA[News - Carnarvon Petroleum shares surge following additional oil discoveries ]]> https://www.proactiveinvestors.com.au/companies/news/202426/carnarvon-petroleum-shares-surge-following-additional-oil-discoveries-202426.html Carnarvon Petroleum Limited (ASX:CVN) has made additional oil discoveries in the Crespin and Milne Members of the Dorado-1 well in the North West Shelf off the coast of Western Australia.

The results, which follow the completion of the wireline evaluation by the Quadrant-Carnarvon Joint Venture, are in addition to those announced on 18 and 24 July 2018.

READ: Carnarvon Petroleum uncovers more oil and gas at Dorado-1, shares rise higher

Carnarvon’s managing director Adrian Cook said the latest results make the Dorado result all the more impressive.

Cook added: “The oil discovered in the Caley Member is very significant in terms of its likely scale and in proving that this play works in the basin.

“Discovering more oil in the Crespin and Milne Members makes this a truly incredible find, for Dorado and for similar structures nearby that have been identified in Carnarvon and Quadrant’s prospect list.”

READ: Carnarvon Petroleum’s Phoenix South-3 well close to primary gas and condensate target

Light oil has been recovered from the Crespin Member containing a gross hydrocarbon package of 50 metres and a net oil pay thickness of 22 metres.

The quality of the reservoir encountered was better than pre-drill estimates with average porosities of 14%.

Pressure data has confirmed that the Dorado structure contains multiple oil columns in the Caley, Crespin and Milne Members and a gas and condensate column in the Baxter Member, aggregating to a total net hydrocarbon pay of 132 metres.

 

The Caley, Baxter and Milne sands did not encounter any water, whereas the lower section of the Crespin sand contains an interpreted water contact.

Cook said: “With drilling and evaluation of the Dorado-1 well now completed, Carnarvon’s assessment of the hydrocarbon volumes associated with this discovery is now well underway.

“The hydrocarbon volumes will be announced to shareholders and investors as soon as possible.”.

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Wed, 08 Aug 2018 11:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202426/carnarvon-petroleum-shares-surge-following-additional-oil-discoveries-202426.html
<![CDATA[News - Carnarvon Petroleum granted ASX halt as it awaits further results from Dorado-1 well ]]> https://www.proactiveinvestors.com.au/companies/news/202253/carnarvon-petroleum-granted-asx-halt-as-it-awaits-further-results-from-dorado-1-well-202253.html Carnarvon Petroleum Limited (ASX:CVN) has been granted an ASX trading halt as it awaits further exploration results from its Dorado-1 well offshore Western Australia.

The halt will remain in place until the earlier of the start of normal ASX trading on Wednesday, August 8 or when the announcement is released to the market.

READ: Carnarvon Petroleum surges 51% on oil discovery at Dorado-1 well on North West Shelf

Carnarvon’s shares have been on the move since the joint venture partners announced an oil discovery at the well in mid-July.

They last traded at 48.5 cents but have risen from 18 cents on July 13, prior to the announcement, to a new 12-month high of 52 cents in late July.

Sandstone intervals encountered

Carnarvon and project partner Quadrant Energy last week announced that they had encountered a number of encouraging sandstone intervals while drilling through the Crespin and Milne members.

Elevated gas readings and increased resistivity were observed in interpreted porous and permeable zones within these intervals, indicating the presence of hydrocarbons.

Carnarvon said these observations warranted wireline logging to obtain more definitive results as to, amongst other things, the nature of the oil, gas and condensate, and the characteristics of the reservoir.

READ: Carnarvon Petroleum appointment brings legal and commercial capabilities

This came as the 7-inch liner at Dorado-1 was set and cemented in place down to around 4,044 metres measured depth (MD) with the well drilled down to about 4,620 metres MD.

The well will continue drilling ahead to a revised deeper total depth of around 4,650 metres MD after which a suite of wireline logging tools will be run.

Dorado-1 is the second well to be drilled by Quadrant at the Phoenix project on the Canning Basin.

It and the other well, Phoenix South-3, have been designed to test the gas and condensate potential of the Caley Member.

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Mon, 06 Aug 2018 13:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202253/carnarvon-petroleum-granted-asx-halt-as-it-awaits-further-results-from-dorado-1-well-202253.html
<![CDATA[News - Carnarvon Petroleum’s Phoenix South-3 well close to primary gas and condensate target ]]> https://www.proactiveinvestors.com.au/companies/news/202162/carnarvon-petroleums-phoenix-south-3-well-close-to-primary-gas-and-condensate-target-202162.html 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.

READ: Carnarvon Petroleum surges 51% on oil discovery at Dorado-1 well on North West Shelf

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.

READ: Carnarvon Petroleum appointment brings legal and commercial capabilities

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.

READ: Carnarvon Petroleum hits 5,041 metres depth for Phoenix South-3 well

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.

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Fri, 03 Aug 2018 12:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202162/carnarvon-petroleums-phoenix-south-3-well-close-to-primary-gas-and-condensate-target-202162.html
<![CDATA[News - Carnarvon Petroleum appointment brings legal and commercial capabilities ]]> https://www.proactiveinvestors.com.au/companies/news/201969/carnarvon-petroleum-appointment-brings-legal-and-commercial-capabilities-201969.html Carnarvon Petroleum Limited (ASX:CVN) is strengthening its aggressive oil and gas exploration focus with experienced legal and commercial executive Gavin Ryan accepting an invitation to join the board of directors.

The new director has extensive legal and commercial skills in oil and gas gained through an extensive international career with organisations such as BHP Petroleum, BP, PTTEP and Shell.

READ: Carnarvon Petroleum surges 51% on oil discovery at Dorado-1 well on North West Shelf

Carnarvon’s chairman Peter Leonhardt said: “We warmly welcome Gavin to the board and look

forward to his contribution at a time of incredible growth in the company.

“As we focus on a number of developments in the business we felt the need to strengthen the legal and commercial skills of the board.”

The company is drilling two wells at the Phoenix project on the North West Shelf and is also active at the Buffalo project in the territorial waters of Timor Leste.

Ryan has experience in government dealings, production sharing contract negotiations and oil field construction projects.

 

Leonhardt added: “Gavin’s experience in oil field developments is particularly relevant and coincidently with him working on the Buffalo oil field whilst at BHP Petroleum.

“Gavin has also been involved in industry-related operations in the Timor Sea which we see as also being relevant to our plans in that area.”

Impressed with regional focus

Ryan said he had been impressed with the Carnarvon team’s strong regional focus and project portfolio.

“The company has demonstrated a performance and culture that appeals and I believe will stand it in good stead for the future.

“I look forward to contributing to that future and meeting with the shareholders at the forthcoming annual general meeting,” he said.

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Wed, 01 Aug 2018 12:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201969/carnarvon-petroleum-appointment-brings-legal-and-commercial-capabilities-201969.html
<![CDATA[News - Carnarvon Petroleum encounters sandstone intervals while drilling Dorado-1 on North West Shelf ]]> https://www.proactiveinvestors.com.au/companies/news/201869/carnarvon-petroleum-encounters-sandstone-intervals-while-drilling-dorado-1-on-north-west-shelf-201869.html Carnarvon Petroleum Limited (ASX:CVN) has encountered a number of encouraging sandstone intervals while drilling through the Crespin and Milne members with the Dorado-1 well offshore Western Australia.

Elevated gas readings and increased resistivity were observed in interpreted porous and permeable zones within these intervals, indicating the presence of hydrocarbons.

These observations warrant wireline logging in order to obtain more definitive results as to, amongst other things, the nature of the oil, gas and condensate, and the characteristics of the reservoir.

READ: Carnarvon Petroleum uncovers more oil and gas at Dorado-1, shares rise higher

Carnarvon and project partner Quadrant Energy have recently uncovered oil and gas at the Dorado-1 well, which is being drilled at the Phoenix project on the North West Shelf.

This sparked strong investor interest in Carnarvon with shares last week rising to a new 12-month high of 52 cents and this morning have opened up almost 10% to 50 cents.

Dorado-1 and the nearby advancing Phoenix-3 well have been designed to test the potential of the Caley Member.

Well reaches 4,620 metres measured depth

Carnarvon and Quadrant have set the 7-inch liner at Dorado-1 and cemented in place down to around 4,044 metres measured depth (MD) with the well drilled down to about 4,620 metres MD.

The well will continue drilling ahead to a revised deeper total depth of around 4,650 metres MD after which a suite of wireline logging tools will be run.

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Tue, 31 Jul 2018 10:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201869/carnarvon-petroleum-encounters-sandstone-intervals-while-drilling-dorado-1-on-north-west-shelf-201869.html
<![CDATA[News - Carnarvon Petroleum uncovers more oil and gas at Dorado-1, shares rise higher ]]> https://www.proactiveinvestors.com.au/companies/news/201386/carnarvon-petroleum-uncovers-more-oil-and-gas-at-dorado-1-shares-rise-higher-201386.html Carnarvon Petroleum Ltd (ASX:CVN) has received additional confirmatory information from the Dorado-1 offshore well over the 80-metre net oil column in the Caley Member interval.

The Quadrant-Carnarvon joint venture has completed additional wireline evaluation since the last update.

READ: Carnarvon Petroleum surges 51% on oil discovery at Dorado-1 well on North West Shelf

The results have confirmed the oil discovery in the Caley Member and have confirmed the presence of gas and condensate in the top of the Baxter Member that was drilled into to enable the evaluation of the Caley Member.

Light oil has been recovered from a sand in the uppermost section of Caley that is in addition to previous samples recovered.

This work was undertaken to provide additional information across a broader area of the Caley and further enhances the joint ventures’ confidence in the results to date.

Gas and condensate samples were also recovered from a good quality reservoir in the top of the Baxter containing an estimated gross hydrocarbon package of 21 metres and a net pay thickness of 10.5 metres.

Dorado-1 well being drilled deeper

Pressure data confirms that the Caley oil and the Baxter gas-condensate discoveries are separately stacked hydrocarbon columns.

However, the well has not completed drilling through the Baxter Member interval and the plan is to deepen the well to about 4,550 metres measured depth.

Phoenix South-3 well at 5,208 metres depth

The latest update also received today has the Phoenix South-3 offshore well at 5,208 metres measured depth.

The primary objective for the Phoenix South-3 well is to also evaluate the gas and condensate potential of the Caley Member interval.

The offshore drill rig is currently preparing to set a 7-5/8 inch liner which will allow the hole to continue down to 5,500 metres measured depth.

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Tue, 24 Jul 2018 11:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201386/carnarvon-petroleum-uncovers-more-oil-and-gas-at-dorado-1-shares-rise-higher-201386.html
<![CDATA[Media files - Carnarvon Petroleum makes oil discovery at its Dorado well ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9929/carnarvon-petroleum-makes-oil-discovery-at-its-dorado-well-9929.html Mon, 23 Jul 2018 17:40:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9929/carnarvon-petroleum-makes-oil-discovery-at-its-dorado-well-9929.html <![CDATA[News - Carnarvon Petroleum rides high on oil discovery as shares reach 34 cents ]]> https://www.proactiveinvestors.com.au/companies/news/201113/carnarvon-petroleum-rides-high-on-oil-discovery-as-shares-reach-34-cents-201113.html Carnarvon Petroleum Limited (ASX:CVN) continues to ride high on the wave of an oil discovery on Western Australia’s North West Shelf, with shares increasing almost 24% today.

News of the discovery on Wednesday saw shares surge 51% to a high of 26.5 cents and today investors have still been keen with the stock reaching a new 12-month high of 34 cents.

READ: Carnarvon Petroleum surges 51% on oil discovery at Dorado-1 well on North West Shelf

This is double the price of close last Friday, prior to Monday’s pre-news trading halt.

There was again strong volume today, with more than 48 million shares traded, valued at almost $14.9 million.

The joint venture between Carnarvon and Quadrant Energy made the discovery in the primary target of the Dorado-1 well, the Caley Member.

Light oil has been recovered from an excellent reservoir in highly porous and permeable sands.

The reservoir contains a gross hydrocarbon package of 96.1 metres and a net pay thickness of 79.6 metres.

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Thu, 19 Jul 2018 16:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201113/carnarvon-petroleum-rides-high-on-oil-discovery-as-shares-reach-34-cents-201113.html
<![CDATA[News - Carnarvon Petroleum surges 51% on oil discovery at Dorado-1 well on North West Shelf ]]> https://www.proactiveinvestors.com.au/companies/news/200995/carnarvon-petroleum-surges-51-on-oil-discovery-at-dorado-1-well-on-north-west-shelf-200995.html Carnarvon Petroleum Limited (ASX:CVN) surged more than 51% on news of a significant oil discovery at the Dorado-1 well on the North West Shelf, off the coast of Western Australia.

The joint venture between Carnarvon and Quadrant Energy has made the discovery in the primary target of the well, the Caley Member.

Light oil has been recovered from an excellent reservoir in highly porous and permeable sands.

The reservoir contains a gross hydrocarbon package of 96.1 metres and a net pay thickness of 79.6 metres.

“Transformation result”

Carnarvon managing director Adrian Cook said the result was transformational for the company and investors responded, lifting shares to a new 12-month high of 26.5 cents.

“This is a significant discovery given the quantum of the net pay thickness, the quality of the oil and the extremely good reservoir characteristics,” he said.

“Currently, we estimate the net oil pay is around 80 metres and with more drilling still to come this is very exciting for Carnarvon Petroleum.

“With multiple targets still left, the focus now is to complete the drilling program through the Baxter, Crespin and Milne members.

“In April we highlighted the possibility that the Dorado structure could contain a substantial oil accumulation.

“Given this outcome has now occurred, Carnarvon will make an assessment of and issue a revised volume estimate as soon as we possibly can once drilling operations have finished.”

 

The results were confirmed after wireline testing was undertaken at the Dorado-1 well, after it drilled down to around 4,044 metres measured depth (MD) in 8-1/2 inch hole.

Currently, the well is still in a hydrocarbon-bearing column.

Excellent reservoir characteristics were interpreted from the logging with average porosity of around 20% with hydrocarbon saturation of 82.5%.

READ: Carnarvon Petroleum cashed up to progress multiple oil, gas opportunities

The high quality of the reservoir was further reinforced by the rapid time taken to extract the oil samples and the high mobility recorded while undertaking formation testing.

A combination of light oil and excellent reservoir characteristics support the potential for high flow rates on production.

Predicted Lithology at Dorado from the 2017 Seismic Inversion Project.

Baxter Member shows promise

Drilling at Dorado-1 has also identified hydrocarbon-bearing sand in the Baxter Member with drilling and evaluation still to be completed in this section.

The well will be deepened to about 4,550 metres MD to evaluate the newly discovered sand and the secondary targets in the Crespin and Milne members.

It is likely that a 7-inch liner will be set prior to drilling into the Crespin and Milne members.

READ: Carnarvon Petroleum continues to receive positive drilling results from Dorado-1 well

Carnarvon previously disclosed prospective resources for Dorado of 545 Bscf of gas and 30 million barrels of associated condensate, being 125 million barrels of oil equivalent.

On April 30, Carnarvon noted that there was a possibility for the structure to contain a substantial oil accumulation.

Given the oil discovery outcome, Carnarvon a revised volume estimate will be issued as soon as it can following the completion of drilling, which will be a contingent resource of oil.

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Wed, 18 Jul 2018 11:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200995/carnarvon-petroleum-surges-51-on-oil-discovery-at-dorado-1-well-on-north-west-shelf-200995.html
<![CDATA[News - Carnarvon Petroleum shares halted pending Dorado-1 well exploration results ]]> https://www.proactiveinvestors.com.au/companies/news/200803/carnarvon-petroleum-shares-halted-pending-dorado-1-well-exploration-results-200803.html Carnarvon Petroleum Ltd (ASX:CVN) has been granted a trading halt by the ASX pending the release of information in relation to the Dorado-1 well exploration results.

The Dorado-1 well is being drilled in the Phoenix Project located offshore Western Australia in the Canning Basin.

Shares in the company will remain halted until the earlier of, the release of information regarding the Dorado-1 exploration results, or, the commencement of trading on Wednesday.

READ: Carnarvon Petroleum continues to receive positive drilling results from Dorado-1 well

The Dorado-1 well is targeting gas and condensate in a zone known as the Caley Member interval.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member.

Notably, the well is less than 20 kilometres from the successful Roc-1 and Roc-2 wells.

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Mon, 16 Jul 2018 12:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200803/carnarvon-petroleum-shares-halted-pending-dorado-1-well-exploration-results-200803.html
<![CDATA[News - Carnarvon Petroleum continues to receive positive drilling results from Dorado-1 well ]]> https://www.proactiveinvestors.com.au/companies/news/200721/carnarvon-petroleum-continues-to-receive-positive-drilling-results-from-dorado-1-well-200721.html Carnarvon Petroleum Limited’s (ASX:CVN) shares are trading about 3% higher intra-day at 17 cents after drilling the Dorado-1 well offshore Western Australia down to around 4,044 metres measured depth.

The significance drilling results to date have warranted that the proposed wireline program is brought forward to immediately quantify the extent of the positive results received so far.

At the completion of the wireline logging program the well will be deepened to assess the Milne and Crespin Members, below the Caley Member.

There is an option to run a further casing string if deemed necessary to reach the final depth, however at this point it is not anticipated.

READ: Carnarvon Petroleum shares rise on promising drill intersects for Dorado-1 well

Earlier this week, Carnarvon’s drilling encountered several sandstone intervals as expected within the Caley Member.

Elevated gas readings and increased resistivity were observed in interpreted porous and permeable zones, indicating the presence of hydrocarbons.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member with the well less than 20 kilometres from and up-dip of the successful Roc-1 and Roc-2 wells.

Importantly, the Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 125 million barrels of oil equivalent.

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Fri, 13 Jul 2018 11:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200721/carnarvon-petroleum-continues-to-receive-positive-drilling-results-from-dorado-1-well-200721.html
<![CDATA[News - Carnarvon Petroleum shares rise on promising drill intersects for Dorado-1 well ]]> https://www.proactiveinvestors.com.au/companies/news/200635/carnarvon-petroleum-shares-rise-on-promising-drill-intersects-for-dorado-1-well-200635.html Carnarvon Petroleum Limited’s (ASX:CVN) shares are trading about 10% higher intra-day at 16 cents after drilling the Dorado-1 well down from 3,640 metres depth to around 3,990 metres.

Importantly, from about 3,853 metres to 3,947 metres, the drilling encountered several sandstone intervals as expected within the Caley Member.

Elevated gas readings and increased resistivity were observed in interpreted porous and permeable zones, indicating the presence of hydrocarbons.

READ: Carnarvon Petroleum cashed up to progress multiple oil, gas opportunities

Carnarvon is continuing to drill the hole from 3,990 metres to about 4,575 metres to evaluate the deeper targets of the Milne and Crespin Members, below the Caley Member.

Results to date are sufficiently encouraging to warrant the running of the wireline logs over the prognosed reservoir section, which will include fluid sampling and pressure testing, at the completion of drilling.

Assessing gas and liquids potential in the Caley Member

Carnarvon’s Dorado-1 well is in the Canning Basin offshore Western Australia.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member with the well less than 20 kilometres from and up-dip of the successful Roc-1 and Roc-2 wells.

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Thu, 12 Jul 2018 12:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200635/carnarvon-petroleum-shares-rise-on-promising-drill-intersects-for-dorado-1-well-200635.html
<![CDATA[News - Carnarvon Petroleum at 3640 metres depth in Dorado-1 offshore well ]]> https://www.proactiveinvestors.com.au/companies/news/200319/carnarvon-petroleum-at-3640-metres-depth-in-dorado-1-offshore-well-200319.html Carnarvon Petroleum Ltd (ASX:CVN) has reached a depth of 3,640 metres in the Dorado-1 offshore well targeting gas and condensate in a zone known as the Caley Member interval.

The drill’s 9 and 5/8 inch liner was set and cemented in place down to around 3,637 metres measured depth and this sized drill will continue down to about 4,050 metres.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member with the well being less than 20 kilometres from and updip of the successful Roc-1 and Roc-2 wells.

READ: Carnarvon Petroleum hits 5,041 metres depth for Phoenix South-3 well

The Phoenix South-3 offshore is also being drilled within the same project targeting the same Caley formation.

At the most recent update at the end of June, the 10-5/8 inch hole had been drilled down to 5,041 metres measured depth with drilling continuing deeper.

As the offshore well gets drilled deeper, thinner drilling equipment is required.

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Mon, 09 Jul 2018 12:13:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200319/carnarvon-petroleum-at-3640-metres-depth-in-dorado-1-offshore-well-200319.html
<![CDATA[News - Carnarvon Petroleum hits 5,041 metres depth for Phoenix South-3 well ]]> https://www.proactiveinvestors.com.au/companies/news/199830/carnarvon-petroleum-hits-5041-metres-depth-for-phoenix-south-3-well-199830.html Carnarvon Petroleum Ltd (ASX:CVN) continues with the drilling of the Phoenix South-3 well which is evaluating the gas and condensate potential of the Caley Member section.

The well is the first drilled by Carnarvon and project operator Quadrant Energy at the Phoenix project located offshore Western Australia in the Canning Basin.

Making progress

The 10-5/8 inch hole has been drilled down to 5,041 metres measured depth with drilling continuing deeper.

The forward plan is to drill the 10-5/8 inch hole from 4,945 metres depth to about 5,160 metres.

Intersecting the Caley reservoir at about 5,183 metres

Following this, the 9 5-8 inch liner will be set before drilling will continue in the 8-1/2 inch hole.

The primary target Caley reservoir is anticipated to be intersected in the 8-1/2 inch hole at a depth of about 5,183 metres measured depth.

560 metres from the Phoenix South-2 well

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within an area that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the section.

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

READ: Carnarvon Petroleum’s Dorado-1 well approaches gas and condensate target on North West Shelf

Recently, Carnarvon updated on drilling operations at the Dorado-1 well also within the Phoenix project.

The well was at a measured depth of about 3,637 metres and was approaching the 3,800-metre target depth.

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Fri, 29 Jun 2018 09:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199830/carnarvon-petroleum-hits-5041-metres-depth-for-phoenix-south-3-well-199830.html
<![CDATA[News - Carnarvon Petroleum’s Dorado-1 well approaches gas and condensate target on North West Shelf ]]> https://www.proactiveinvestors.com.au/companies/news/199364/carnarvon-petroleums-dorado-1-well-approaches-gas-and-condensate-target-on-north-west-shelf-199364.html Carnarvon Petroleum Limited’s (ASX:CVN) drilling operations at the Dorado-1 well of the Phoenix project offshore Western Australia are at a measured depth of about 3,637 metres.

The well is now approaching the target of the Dorado structure at the Caley interval, which is expected to be intersected at a depth of around 3,800 metres.

Second well at Phoenix project

It is the second well being drilled by Carnarvon and project operator Quadrant Energy seeking gas and condensate at the Phoenix project.

As the hole gets deeper, drill casings get narrower and the 12-1/4 inch casing size was completed at 3,637 metres.

The plan is to run and cement the 9-5/8 inch liner then drill the 8-1/2 inch into the primary Caley Member target.

Location of the Dorado-1 well within the Phoenix project.

Assessing gas and liquids

Carnarvon’s primary objective for this well is to assess the gas and liquids potential in the Caley Member.

The well is less than 20 kilometres from and up-dip of the successful Roc-1 and Roc-2 wells.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 billion cubic feet of gas and 30 million barrels of associated condensate.

This is equal to 125 million barrels of oil equivalent, gross, Pmean.

A seismic line showing the incised Dorado Canyon with the red line showing the top Caley Member.

Multiple secondary targets have been identified by Carnarvon in the Crispin and Milne Members and these will also be assessed by the Dorado-1 exploration well.

READ: Carnarvon Petroleum down to 4,634 metres at Phoenix South-3 well

Drilling by Quadrant of the first well at the project, Phoenix South-3, last week reached 4,634 metres measured depth.

It is also targeting the Caley Member and a closure estimated to contain a gross mean recoverable prospective resource of 143 million barrels of oil equivalent.

This well is within a large, faulted anti-clinal closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

READ: Carnarvon Petroleum cashed up to progress multiple oil, gas opportunities

Carnarvon recently completed a $20 million capital raising, which has strengthened its total cash position to $65 million.

These funds will enable the company to pursue drilling of the Buffalo-10 well, also on the North West Shelf, with the maximum equity possible.

This well is in the territorial waters of Timor Leste in the northeast of the North West Shelf.

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Fri, 22 Jun 2018 13:44:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199364/carnarvon-petroleums-dorado-1-well-approaches-gas-and-condensate-target-on-north-west-shelf-199364.html
<![CDATA[News - Carnarvon Petroleum at 1,250 metres depth for the Dorado-1 well ]]> https://www.proactiveinvestors.com.au/companies/news/198912/carnarvon-petroleum-at-1250-metres-depth-for-the-dorado-1-well-198912.html Carnarvon Petroleum Ltd (ASX:CVN) has drilled down to 1,250 metres measured depth in its Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

As the hole gets deeper, the drill casings get narrower, the current casing size aims to take the hole to 3,600 metres depth before a smaller casing is set.

Drilling is targeting the Caley Member interval which is expected to be intersected at a depth of about 3,800 metres measured depth.

READ: Carnarvon Petroleum commences drilling Dorado-1 well

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval.

The well is less than 20 kilometres from and updip of the successful Roc-1 and Roc-2 wells.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 billion cubic feet of gas and 30 million barrels of associated condensate.

This equals 125 million barrels of oil equivalent, gross, Pmean.

READ: Carnarvon Petroleum down to 4,634 metres at Phoenix South-3 well

Drillong of the Phoenix South-3 well at the nearby Phoenix project is also underway and yesterday and update revealed it was at 4,634 metres measured depth.

It is also targeting the Caley Member and a closure that is estimated by Carnarvon to contain a gross mean recoverable prospective resource of 143 million barrels of oil equivalent.

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Fri, 15 Jun 2018 13:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198912/carnarvon-petroleum-at-1250-metres-depth-for-the-dorado-1-well-198912.html
<![CDATA[News - Carnarvon Petroleum down to 4,634 metres at Phoenix South-3 well ]]> https://www.proactiveinvestors.com.au/companies/news/198832/carnarvon-petroleum-down-to-4634-metres-at-phoenix-south-3-well-198832.html Carnarvon Petroleum Ltd (ASX:CVN) has noted that drilling operations are at 4,634 metres measured depth at the Phoenix South-3 offshore well.

The well is the first drilled by Carnarvon and project operator Quadrant Energy at the Phoenix project offshore Western Australia seeking gas and condensate.

It is targeting a closure that is estimated by Carnarvon to contain a gross mean recoverable prospective resource of 143 million barrels of oil equivalent.

Evaluating the Caley Member section

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member section.

It is within a large, faulted anti-clinal closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

READ: Carnarvon Petroleum commences drilling Dorado-1 well

Earlier this month Carnarvon commenced drilling the Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval by drilling down about 1,175 metres.

The well is less than 20 kilometres from and updip of the successful Roc-1 and Roc-2 wells.

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Thu, 14 Jun 2018 14:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198832/carnarvon-petroleum-down-to-4634-metres-at-phoenix-south-3-well-198832.html
<![CDATA[News - Carnarvon Petroleum cashed up to progress multiple oil, gas opportunities ]]> https://www.proactiveinvestors.com.au/companies/news/198410/carnarvon-petroleum-cashed-up-to-progress-multiple-oil-gas-opportunities-198410.html Carnarvon Petroleum Limited (ASX:CVN) recently completed a $20 million capital raising and has strengthened its total cash position to $65 million.

The funds were raised to enable the company to pursue drilling of the Buffalo-10 well with the maximum equity possible and to progress activity across other Carnarvon permits.

The Buffalo oil field is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste and the field will be completely within Timor-Leste’s jurisdiction.

Plans to drill in 2019

Carnarvon’s plan is to drill the Buffalo-10 well in 2019 then move to oil production around 18 to 30 months later.

The project is expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at over US$2.3 billion.

Notably, with an expected development cost of less than $150 million and a simple low cost floating production system, the project is expected to have a high profit margin.

READ: Carnarvon Petroleum commences drilling Dorado-1 well

Earlier this week, the company commenced drilling the Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval by drilling to a depth of about 1,175 metres.

The Dorado structure at the Caley interval is estimated to contain prospective resources of gas and associated condensate equivalent to 125 million barrels of oil.

Meanwhile, the company’s current two Phoenix project wells are seeking to confirm commercial viability after having successfully proved the existence of a working petroleum system from the first four wells.

READ: Carnarvon Petroleum’s well reaches 4,619 metres targeting gas and condensate on North West Shelf

The Phoenix wells are on the North West Shelf offshore Western Australia.

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Thu, 07 Jun 2018 12:37:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198410/carnarvon-petroleum-cashed-up-to-progress-multiple-oil-gas-opportunities-198410.html
<![CDATA[News - Carnarvon Petroleum commences drilling Dorado-1 well ]]> https://www.proactiveinvestors.com.au/companies/news/198229/carnarvon-petroleum-commences-drilling-dorado-1-well-198229.html Carnarvon Petroleum Ltd (ASX:CVN) has commenced drilling the Dorado-1 well targeting gas and liquids in the Canning Basin offshore Western Australia.

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member interval by drilling down about 1,175 metres.

The well is less than 20 kilometres from and updip of the successful Roc-1 and Roc-2 wells.

Targeting 125 million barrels of oil equivalent

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 billion cubic feet of gas and 30 million barrels of associated condensate.

This equals 125 million barrels of oil equivalent, gross, Pmean.

Other targets to also be drilled

Multiple secondary targets have been identified by Carnarvon in the Crispin and Milne Members and these will also be assessed by the Dorado-1 exploration well.

READ: Carnarvon Petroleum’s well reaches 4,619 metres targeting gas and condensate on North West Shelf

Last week, Carnarvon drilled the Phoenix South-3 well in the same project to a measured depth of 4,619 metres.

The well was the first drilled by Carnarvon and project operator Quadrant Energy at the Phoenix project offshore Western Australia seeking gas and condensate.

This well was also targeting the Caley Member at a depth of about 5,360 metres.

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Tue, 05 Jun 2018 12:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198229/carnarvon-petroleum-commences-drilling-dorado-1-well-198229.html
<![CDATA[News - Carnarvon Petroleum pockets additional cash from share purchase plan ]]> https://www.proactiveinvestors.com.au/companies/news/198139/carnarvon-petroleum-pockets-additional-cash-from-share-purchase-plan-198139.html Carnarvon Petroleum Ltd (ASX:CVN) has added to its cash position after raising $4 million via a share purchase plan, bringing the total of the recent raising to $20 million.

The shares will be allotted on Wednesday 6 June 2018.

The raising was priced at 13 cents, with Carnarvon last trading at 14 cents.

READ: Carnarvon Petroleum about to set-up Dorado-1 well targeting gas and liquids

Carnarvon remains focused the commercialisation of high value projects on the North West Shelf of Australia.

WATCH: Carnarvon Petroleum set to "bring forward the next phases of value for shareholders" ]]>
Mon, 04 Jun 2018 11:05:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198139/carnarvon-petroleum-pockets-additional-cash-from-share-purchase-plan-198139.html
<![CDATA[News - Carnarvon Petroleum’s well reaches 4,619 metres targeting gas and condensate on North West Shelf ]]> https://www.proactiveinvestors.com.au/companies/news/197973/carnarvon-petroleums-well-reaches-4619-metres-targeting-gas-and-condensate-on-north-west-shelf-197973.html Carnarvon Petroleum Limited (ASX:CVN) has drilled the Phoenix South-3 well on the North West Shelf to a measured depth of 4,619 metres and is preparing to run the 11-3/4 inch liner.

The well is the first drilled by Carnarvon and project operator Quadrant Energy at the Phoenix project offshore Western Australia seeking gas and condensate.

Using a semi-sub rig, this drilling is targeting the Caley Member at a depth of about 5,360 metres and this is also the target of a second well being prepared at nearby Dorado-1.

READ: Carnarvon Petroleum’s drilling on track to reach primary gas target

Shares are up almost 8% to 14 cents.

At Phoenix South-3 the 12-1/4 inch hole section has been completed to 4,619 metres with the hole being prepared for the 11-3/4 inch liner.

Quadrant will then drill the 10-5/8 inch hole to about 5,160 metres measured depth.

A 9-5/8 casing will then be set before the 8-1/2 inch hole section is drilled to the top of the primary Caley Member section.

Objective to assess Caley Member

The primary objective for this well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted anti-clinal closure partially penetrated with the previous Phoenix South-2 well.

This well encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

Designed to evaluate formations

Phoenix South-3 has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

The well is targeting a closure that is estimated to contain a prospective resource of gas and associated condensate equivalent to 143 million barrels of oil.

It is around 560 metres north-northeast of Phoenix South-2.

READ: Carnarvon Petroleum about to set-up Dorado-1 well targeting gas and liquids

At the Dorado-1 well site, an Ensco-107 jack-up drilling rig is on site and being prepared for drilling.

Dorado is considered a probable gas prospect with significant associated condensate.

There is also the possibility for the structure to contain a substantial oil accumulation.

The Dorado structure at the Caley interval is estimated to contain a prospective gas and condensate resource equivalent to 125 million barrels of oil.

Multiple secondary targets have been identified in the Crispin and Milne members, and these will also be assessed by the Dorado-1 exploration well.

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Thu, 31 May 2018 13:35:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197973/carnarvon-petroleums-well-reaches-4619-metres-targeting-gas-and-condensate-on-north-west-shelf-197973.html
<![CDATA[News - Carnarvon Petroleum’s drilling on track to reach primary gas target ]]> https://www.proactiveinvestors.com.au/companies/news/197761/carnarvon-petroleums-drilling-on-track-to-reach-primary-gas-target-197761.html Carnarvon Petroleum Limited (ASX:CVN) is continuing to progress the drilling of the Phoenix South-3 rig and is currently drilling ahead at 4,352 metres measured depth.

Importantly, the Caley primary target is expected to be intersected at a depth of about 5,360 metres.

The Phoenix South-3 well is on the prolific North West Shelf, off the coast of Western Australia.

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted closure that was partially penetrated with the Phoenix South-2 well.

Carnarvon’s well will target a closure that is estimated to contain a prospective resource of gas and associated condensate equivalent to 143 million barrels of oil.

READ: Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field

Earlier this month, Carnarvon raised $16 million in a placement to facilitate the redevelopment of the Buffalo oil field on the North West Shelf.

Buffalo-10 will be positioned to test new oil in the attic accumulation as well as drill deeper into the oil pool in the field’s previously developed portion.

Expected timing for drilling to start on the first well is between March and September 2019, after the end of the cyclone season.

Notably, the wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

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Mon, 28 May 2018 13:32:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197761/carnarvon-petroleums-drilling-on-track-to-reach-primary-gas-target-197761.html
<![CDATA[Media files - Carnarvon Petroleum set to "bring forward the next phases of value for shareholders" ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9355/carnarvon-petroleum-set-to-bring-forward-the-next-phases-of-value-for-shareholders--9355.html Wed, 23 May 2018 18:07:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9355/carnarvon-petroleum-set-to-bring-forward-the-next-phases-of-value-for-shareholders--9355.html <![CDATA[News - Carnarvon Petroleum about to set-up Dorado-1 well targeting gas and liquids ]]> https://www.proactiveinvestors.com.au/companies/news/197502/carnarvon-petroleum-about-to-set-up-dorado-1-well-targeting-gas-and-liquids-197502.html Carnarvon Petroleum Limited (ASX:CVN) is about to start drilling set-up for the Dorado-1 well which will target gas and liquids at the Phoenix project on the North West Shelf.

The Ensco-107 jack-up drilling rig is near the well location offshore Western Australia after arriving from Singapore.

Carnarvon and project operator Quadrant Energy are waiting for the swell to subside before the rig moves into the drilling location.

READ: Carnarvon Petroleum expects to start drilling for gas and liquids at Dorado-1 by end of May

Once on location, the legs will be jacked down onto the seafloor and the rig prepared for the start of drilling.

It will be the second well in the current program of Carnarvon and Quadrant with drilling at the nearby Phoenix South-3 well underway.

The primary objective of the Dorado-1 well is to assess the gas and liquids potential in the Caley Member.

Probable gas prospect

Dorado is considered as a probable gas prospect with significant associated condensate.

There is also the possibility for the structure to contain a substantial oil accumulation.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 30 million barrels of associated condensate, which is equivalent to 125 million barrels of oil.

Multiple secondary targets have been identified in the Crispin and Milne members, and these will also be assessed by the Dorado-1 exploration well.

READ: Carnarvon Petroleum’s Phoenix South-3 well reaches 3,733 metres targeting North West Shelf gas and liquids

A semi-sub rig is drilling the Phoenix South-3 well in the adjacent WA-435-P permit.

This well is setting casing at 3,733 metres (measured depth) before drilling ahead to the Caley formation target at around 5,300 metres.

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Wed, 23 May 2018 13:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197502/carnarvon-petroleum-about-to-set-up-dorado-1-well-targeting-gas-and-liquids-197502.html
<![CDATA[News - Carnarvon Petroleum’s Phoenix South-3 well reaches 3,733 metres targeting North West Shelf gas and liquids ]]> https://www.proactiveinvestors.com.au/companies/news/197146/carnarvon-petroleums-phoenix-south-3-well-reaches-3733-metres-targeting-north-west-shelf-gas-and-liquids-197146.html Carnarvon Petroleum Limited (ASX:CVN) advises that drilling of the Phoenix South-3 well has reached 3,733 metres measured depth on its way down to gas and condensate in the Caley Member at about 5,300 metres.

After drilling the 17 1/2 inch hole to 3,733 metres, Phoenix project operator Quadrant Energy is setting the 13 5/8 casing in place.

READ: Carnarvon Petroleum on schedule with drilling at Phoenix South-3 well

When this casing is set and cemented operations will continue with drilling in 12 1/4 inch hole and concurrently opening to 14 3/4 inch diameter.

Opening the hole diameter allows for an additional casing string to be run over the Hove, prior to drilling the Caley objective in 8 1/2 inch hole.

Phoenix is on the prolific North West Shelf, off the coast of Western Australia.

Evaluating Caley Member

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.

This was partially penetrated with the Phoenix South-2 well, which encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The well being drilled is around 560 metres north-north-east of the Phoenix South-2 well.

It has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

READ: Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field

Phoenix South-3 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 equivalent to 143 million barrels of oil.

Prospective resources are the estimated quantities that may potentially be recovered by the application of a future development project and may relate to undiscovered accumulations.

Dorado-1 well next

Carnarvon and Quadrant aim to start drilling the second well at the Phoenix project, Dorado-1, by the end of May.

An Ensco 107 jackup drilling rig is heading to the Dorado location and will also assess the gas and liquids potential of the Caley Member.

The Dorado structure at Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 30 million barrels of associated condensate.

This is equivalent to 125 million barrels of oil.

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Thu, 17 May 2018 10:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197146/carnarvon-petroleums-phoenix-south-3-well-reaches-3733-metres-targeting-north-west-shelf-gas-and-liquids-197146.html
<![CDATA[News - Carnarvon Petroleum on schedule with drilling at Phoenix South-3 well ]]> https://www.proactiveinvestors.com.au/companies/news/196799/carnarvon-petroleum-on-schedule-with-drilling-at-phoenix-south-3-well-196799.html Carnarvon Petroleum Limited (ASX:CVN) is progressing as planned at the Phoenix South-3 well aimed at evaluating the gas and condensate potential of the Caley Member at the Phoenix project on the North West Shelf.

The 20-inch casing has been set and cemented in place, the Blowout Preventer has been installed and pressure tested, and drilling has started in 17 1/2 inch hole.

READ: Carnarvon Petroleum on track with Phoenix South-3 drilling program

Carnarvon’s partner in the Phoenix project, Quadrant Energy, is drilling ahead in 17 1/2 inch hole at measured depth of 3,114 metres.

Quadrant estimates it will take around another week to finish drilling this section of hole to about 3,700 metres after which 13 5/8 inch casing will set.

A number of hole sections will be drilled prior to the primary Caley target section, which is expected to be intersected at a depth of around 5,300 metres.

Evaluating gas and condensate potential

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.

That well, 560 metres from the current well, encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

Location of the well within the Phoenix project.

READ: Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the Caley Member’s hydrocarbon-bearing formations.

It will target 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 equates to 143 million barrels of oil equivalent.

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Fri, 11 May 2018 15:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196799/carnarvon-petroleum-on-schedule-with-drilling-at-phoenix-south-3-well-196799.html
<![CDATA[News - Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field ]]> https://www.proactiveinvestors.com.au/companies/news/196793/carnarvon-petroleum-raises-16-million-to-assist-in-redeveloping-the-buffalo-oil-field-196793.html Carnarvon Petroleum Limited (ASX:CVN) has raised $16 million in a placement to facilitate redevelopment of the Buffalo oil field on the North West Shelf.

The placement was primarily to new investors at a price of 13 cents per share and existing shareholders have the chance to participate in a share purchase offer at the same price to raise up to $4 million.

This represents a 14.5% discount to the average share price over the last 30 days and 18.69% to the last 10 days.

READ: Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well

Chief executive officer Adrian Cook said: “The Buffalo project has the potential to generate significant value that’s ideally suited to Carnarvon in terms of scale, time to first production and overall risk profile.

"This capital raise demonstrates our expeditious approach to make this production opportunity a reality for shareholders, particularly as we see oil prices strengthening from the recent lows of previous years.”

Investors have shown strong support for the company’s oil and gas strategy.

As well as the successful placement, Carnarvon’s shares reached a 12-month high of 17.5 cents this month.

READ: Carnarvon Petroleum on track with Phoenix South-3 drilling program

This comes on the back of strong news flow from the Phoenix project where partner Quadrant Energy is drilling and from the Buffalo project where Carnarvon is preparing a program.

Placement funds will enable the company to develop Buffalo-10 well, the first of three production wells to be drilled in this oil redevelopment project.

Plans to drill in 2019

Expected timing for drilling to start on the first well is between March and September 2019, after the end of the cyclone season.

The wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

Buffalo-10 will be positioned to test new oil in the attic accumulation as well as drill deeper into the oil pool in the field’s previously developed portion.

With a depth to reservoir of around 3,250 metres, it is expected to take around 30 days to drill.

Buffalo covered by Timor-Leste treaty

The Buffalo oil field is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste and the field will be completely within Timor-Leste’s jurisdiction.

Carnarvon is engaging with suppliers for redevelopment of the field, including preparing the basis of well design, starting the environmental approvals process and identification of rigs.

The company has also started discussions with floating production, storage and offloading (FPSO) providers, and is resourcing staff and contractors.

Drilling at Phoenix

Further to the southwest, Carnarvon is participating in drilling the Phoenix South-3 well and will soon begin drilling the Dorado-1 well in its Phoenix project.

Cook said: "Carnarvon now offers investors two high-quality, organically derived projects progressing to commercialisation phases in the near term.”

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Fri, 11 May 2018 14:31:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196793/carnarvon-petroleum-raises-16-million-to-assist-in-redeveloping-the-buffalo-oil-field-196793.html
<![CDATA[News - Carnarvon Petroleum enters trading halt ahead of capital raising ]]> https://www.proactiveinvestors.com.au/companies/news/196691/carnarvon-petroleum-enters-trading-halt-ahead-of-capital-raising-196691.html Carnarvon Petroleum Ltd (ASX:CVN) has been granted a trading halt by the ASX pending the release of information regarding a proposed capital raising.

Shares of the company will remain halted until either the information is released to the market or the commencement of trading next Monday, whichever occurs first.

READ: Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well

Carnarvon is progressing redevelopment plans for the Buffalo Oil Field in the Timor Sea with preparations underway for the first production well.

Buffalo-10 will be the first of three proposed production wells at the project which is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste.

The wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

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Thu, 10 May 2018 10:44:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196691/carnarvon-petroleum-enters-trading-halt-ahead-of-capital-raising-196691.html
<![CDATA[News - Carnarvon Petroleum moves closer to oil production at Buffalo with preparations for first well ]]> https://www.proactiveinvestors.com.au/companies/news/196293/carnarvon-petroleum-moves-closer-to-oil-production-at-buffalo-with-preparations-for-first-well-196293.html Carnarvon Petroleum Limited (ASX:CVN) is progressing redevelopment plans for the Buffalo Oil Field in the Timor Sea with preparations underway for the first production well.

Buffalo-10 will be the first of three proposed production wells at the project which is covered by the recently signed Maritime Boundary Treaty between Australia and Timor-Leste.

The wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.

READ: Carnarvon Petroleum’s plans get a boost from Australia-East Timor maritime border treaty

The treaty has enabled Carnarvon to progress the Buffalo redevelopment plans while the company and partner Quadrant Energy are drilling at the Phoenix project to the southwest.

This news is likely to have a positive impact on shares, which have recently traded at a 12-month high of 16 cents.

“Low capital and operating costs”

Chief executive officer Adrian Cook said: “The low capital and operating costs mean Buffalo is a very high yielding, standout project at current oil prices.

“It is a project capable of supporting a mix of funding alternatives which could naturally include a portion of Carnarvon’s current cash, debt funding and partner and industry funding where interest is very strong.”

$48 million in cash

Carnarvon had $48 million in cash as at March 31, 2018.

The treaty means the Buffalo oil field will be completely within Timor-Leste jurisdiction.

As such, Carnarvon has established an office in Dili, appointed a specialist Timor-Leste advisor and initiated a series of meetings with government agency Autoridade Nacional do Petróleo e Minerais.

These meetings have demonstrated that the parties are aligned in wanting to achieve first oil as soon as practicable.

Engaging with suppliers

Carnarvon is engaging with suppliers for the redevelopment of the field, including preparing the basis of well design, starting the environmental approvals process and identification of rigs.

The company has also commenced discussions with floating production, storage and offloading (FPSO) providers, and is resourcing staff and contractors.

Field development consists of a well head platform connected to an FPSO through a production pipeline and control umbilicals.

Buffalo-10 will be positioned to test the new oil in the attic accumulation as well as drill deeper into the oil pool in the previously developed portion of the field.

With a depth to reservoir of around 3,250 metres, it is expected to take around 30 days to drill.

It will complete with an extensive formation evaluation program, which will complement the geological knowledge from the previous oil field well intersections.

Cost effective jack-up rig

Being in shallow water of only 25 metres, a cost-effective jack-up rig will be used to drill the well.

Cook said: “The nature of the project is also well suited to Carnarvon in terms of its scale, time to first production and overall risk profile.

“As such Carnarvon intends to take a leading role in redeveloping the oil field.”

Independent cost analysis

Carnarvon commissioned an independent cost analysis of the redevelopment with the report showing capital expenditure below US$150 million.

Annual operational costs were separately assessed in a range of US$80 million to US$100 million, on the basis the field has a production life of around five years.

The total operational expenditure is expected to be between US$400 million to US$500 million.

READ: Carnarvon Petroleum drilling to add to gas and condensate bounty at Phoenix project

Buffalo is therefore deemed a low-cost operation with total expenditure representing US$18 to $21 per barrel.

At Brent oil prices of around US$73 per barrel, the field is expected to generate around US$2.2 billion in revenue.

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Thu, 03 May 2018 09:53:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196293/carnarvon-petroleum-moves-closer-to-oil-production-at-buffalo-with-preparations-for-first-well-196293.html
<![CDATA[News - Carnarvon Petroleum expects to start drilling for gas and liquids at Dorado-1 by end of May ]]> https://www.proactiveinvestors.com.au/companies/news/196002/carnarvon-petroleum-expects-to-start-drilling-for-gas-and-liquids-at-dorado-1-by-end-of-may-196002.html Carnarvon Petroleum Limited (ASX:CVN) and Quadrant Energy expect to start drilling the Dorado-1 well targeting gas and liquids on the North West Shelf by the end of May.

The Ensco 107 jackup drilling rig has left Singapore and is heading to the Dorado location off Western Australia’s northwest coast.

It will be the second well in the current program of Carnarvon and Quadrant with drilling at the nearby Phoenix South-3 well now underway.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts

The primary objective of the Dorado-1 well is to assess the gas and liquids potential in the Caley Member.

It will be less than 20 kilometres from and up-dip of the successful Roc-1 and Roc-2 wells.

The Roc-2 well also tested the deliverability of the reservoir through a well test that achieved around 55 million scf per day of gas and an associated condensate rate of 3,000 barrels per day.

On location by mid-May

Carnarvon expects the rig to be on location by mid-May with drilling to start by the end of the month.

It is expected to take around 60 days to complete and be at the top of the primary objective in around 35 days.

READ: Carnarvon Petroleum on track with Phoenix South-3 drilling program

Based on the results at Roc and Phoenix South, Dorado is considered as a probable gas prospect, with significant associated condensate.

There is also the possibility for the structure to contain a substantial oil accumulation.

This is due to the known presence of oil-prone source-rocks in the section at Roc, and the possibility that gas at Roc has displaced the oil up-dip into Dorado.

Up-dip of Roc discoveries

As the Dorado-1 well will be up-dip of the Roc discoveries, the overall chance of success of this prospect is enhanced.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 30 million barrels of associated condensate, which is equivalent to 125 million barrels of oil.

Seismic line showing the incised Dorado Canyon which defines the Dorado trap.

Secondary targets

Multiple secondary targets have been identified in the Crispin and Milne members, and these will also be assessed by the Dorado-1 exploration well.

The Dorado structure is clearly defined on 3-D seismic.

A shale-filled canyon, the Dorado Canyon, which has incised into the Caley and Milne sediments, creates a large trap geometry in the target levels, bounded to the west, south and east.

Similar shale-filled canyon trap geometries have proven effective in a number of gas fields in Victoria’s Gippsland Basin.

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Mon, 30 Apr 2018 10:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196002/carnarvon-petroleum-expects-to-start-drilling-for-gas-and-liquids-at-dorado-1-by-end-of-may-196002.html
<![CDATA[News - Carnarvon Petroleum on track with Phoenix South-3 drilling program ]]> https://www.proactiveinvestors.com.au/companies/news/195800/carnarvon-petroleum-on-track-with-phoenix-south-3-drilling-program-195800.html Carnarvon Petroleum Limited (ASX:CVN) has provided an update on the drilling of the Phoenix South-3 well, offshore Western Australia.

The report, which indicates drilling is going to plan, was advised by the operator and 80% joint venture partner Quadrant Energy.

Since the last report, after setting the 36-inch surface conductor, the well has been drilled down to around 1,500 metres measured depth in a 26-inch hole size.

Well objective

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted anti-clinal closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon-bearing formations of the Caley Member.

Close proximity to Phoenix South-2

Phoenix South-3 is around 560 metres north-northeast of the Phoenix South-2 well.

The well is targeting a closure estimated by Carnarvon to contain a gross mean recoverable prospective resource of 489 billion standard cubic feet of gas and 57 million barrels of associated condensate.

This represents 143 million barrels of oil equivalent.

Brokers like the story

Analysts at Hartleys view Carnarvon as one of the best stocks to target to gain leverage to the oil price recovery.

Furthermore, the broker said that the upcoming drilling campaign is potentially a transformational stage for the company.

Hartleys analyst Aiden Bradley said: “Discoveries to date in the Bedout Sub-Basin (especially Phoenix South Caley) have contained a very high liquids content and is a potential game-changer in terms of the economics of any potential development in the sub-basin.

“It is also a huge differentiator in comparison to the investment returns from a dry gas field such as the developed (similarly sized) Reindeer Field.”

The broker has a price target of 25 cents on the stock, representing a sizeable premium to the 12-month high of 15.5 cents which was struck this week.

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Thu, 26 Apr 2018 09:11:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195800/carnarvon-petroleum-on-track-with-phoenix-south-3-drilling-program-195800.html
<![CDATA[News - Carnarvon Petroleum drilling to add to gas and condensate bounty at Phoenix project ]]> https://www.proactiveinvestors.com.au/companies/news/195512/carnarvon-petroleum-drilling-to-add-to-gas-and-condensate-bounty-at-phoenix-project-195512.html Carnarvon Petroleum Limited (ASX:CVN) aims to add more than 1 trillion standard cubic feet of gas and 88 million barrels of associated condensate from drilling underway on the North West Shelf of Western Australia.

The company’s partner Quadrant Energy has started a new drilling program at the Phoenix project with the Phoenix South-3 well underway and the Dorado-1 well to start in May.

Carnarvon has 20% of the project with Quadrant holding 80% and is the operator.

READ: Carnarvon Petroleum begins drilling Phoenix South-3 well to unlock gas, condensate potential

The objective of the 2018 drilling program is to build on the already discovered oil and gas resources and to assist in future decisions around optimising a commercial development.

Four discoveries have been made from the four wells drilled to date by the JV partners at Phoenix - Phoenix South-1, Roc-1, Roc-2 and Phoenix South-2.

Gas resources to date total 332 billion standard cubic feet (Bscf) while condensate resources total 27 million barrels (mm bbls).

Carnarvon and Quadrant believe the volumes from the Phoenix South-3 and Dorado-1 wells will materially improve these resources.

READ: Carnarvon Petroleum trades strongly ahead of active drilling campaign

Phoenix South-3 alone is estimated to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 mm bbls of associated condensate, which is equivalent to 143 million barrels of oil.

The Dorado structure also has the potential to contain a number of additional targets beneath the Caley interval.

These could contain significant additional volumes of gas and condensate, albeit having a lower predicted chance of geological success.

The partners believe an exciting aspect of the Phoenix project is the potential to unlock further gas and condensate and oil through additional drilling.

Targets already identified within comfortable tie back distance to a development around the Roc area include the Apus and Mensa prospects.

In addition, a large number of prospects and leads are continually being matured through ongoing technical work.

Key investment attractions

Phoenix has a number of key attractions for investors, including dual income stream potential from oil and gas, proximity to infrastructure and positioning in shallow water of about 100 metres.

The latter substantially reduces the cost and complexity of a development, allowing for the aggregation of discoveries in the near vicinity.

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Mon, 23 Apr 2018 10:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195512/carnarvon-petroleum-drilling-to-add-to-gas-and-condensate-bounty-at-phoenix-project-195512.html
<![CDATA[News - Carnarvon Petroleum begins drilling Phoenix South-3 well to unlock gas, condensate potential ]]> https://www.proactiveinvestors.com.au/companies/news/195104/carnarvon-petroleum-begins-drilling-phoenix-south-3-well-to-unlock-gas-condensate-potential-195104.html Carnarvon Petroleum Limited (ASX:CVN) and its joint venture partner and project operator Quadrant Energy have commenced drilling at the Phoenix South-3 well.

The well is in waters off north-western Western Australia with other projects such as Condor and Eagle to the north and Labyrinth and Maracas to the south.

Since arriving on site, the rig successfully completed the ‘ready to operate’ process and has finished drilling the 42-inch hole in preparation for the 36-inch surface conductor.

Aiming to penetrate and evaluate hydrocarbon bearing formations

The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted closure that was partially penetrated with the Phoenix South-2 well.

Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation.

The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon bearing formations of the Caley Member.

READ: Carnarvon Petroleum trades strongly ahead of active drilling campaign

Drilling of the Phoenix South-3 well is estimated to take around 90 days to reach the target depth of about 5,500 metres.

The operator’s plans encompass staged drilling just above and through the Caley reservoir section.

The well will target a closure that is estimated to contain a gross mean recoverable prospective resource of 489 Bscf (billions of standard cubic feet) of gas and 57 million barrels of associated condensate, which is equivalent to 143 million barrels of oil.

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Tue, 17 Apr 2018 12:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195104/carnarvon-petroleum-begins-drilling-phoenix-south-3-well-to-unlock-gas-condensate-potential-195104.html
<![CDATA[News - Carnarvon Petroleum trades strongly ahead of active drilling campaign ]]> https://www.proactiveinvestors.com.au/companies/news/194997/carnarvon-petroleum-trades-strongly-ahead-of-active-drilling-campaign-194997.html Carnarvon Petroleum Limited (ASX:CVN) and its joint venture partner Quadrant Energy are preparing to commence drilling at the Phoenix South-3 well.

The well is in waters off north-western Western Australia with other projects such as Condor and Eagle to the north and Labyrinth and Maracas to the south.

Testing same interval as Phoenix South-2

The Phoenix South-3 well will test the same interval that contained gas and condensate in the Phoenix South-2 well 560 metres away.

The cost to redrill to the top of the Caley interval will be mostly covered by an insurance claim associated with the Phoenix South-2 well operation, which had to cease drilling at this interval.

Dorado-1 also targeting the Caley interval

In addition to the Phoenix South-3 well, the upcoming Dorado-1 well is expected to commence drilling in May 2018.

The primary zone in Dorado-1 is also the Caley interval, although the well will also test slightly deeper secondary targets for additional oil and gas.

Other potential catalysts

Carnarvon was also awarded a new permit, the Eagle Project, in the highly prospective Vulcan sub-basin, near Carnarvon’s recently acquired Condor project.

Eagle is in a hydrocarbon prone region within the North-West Shelf and contains several Jurassic and Cretaceous oil leads over multiple reservoir levels.

Once the recent Cygnus 3D seismic has been processed over the area, Carnarvon will progress its technical and prospect development work.

Financially robust to fund drilling

Carnarvon had a cash balance of $48.1 million at the end of the quarter.

With existing cash and the successful insurance claim, Carnarvon remains well-funded for its upcoming Phoenix and Dorado drilling campaign.

Consensus share price target implies upside

Furthermore, its shares have been trading strongly, having more than doubled in fiscal 2018 to a 12-month high of 16 cents last week.

This rerating occurred under the third-highest volumes recorded in the last 12 months, suggesting confidence is mounting regarding the company’s active exploration program.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover

However, it is worth noting that the 12-month consensus price target of 24 cents suggests there is share price upside of 60% from Monday morning’s opening price of 15 cents.

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Mon, 16 Apr 2018 11:50:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194997/carnarvon-petroleum-trades-strongly-ahead-of-active-drilling-campaign-194997.html
<![CDATA[News - Carnarvon Petroleum expects drilling to start shortly at Phoenix South-3 after rig arrives ]]> https://www.proactiveinvestors.com.au/companies/news/194193/carnarvon-petroleum-expects-drilling-to-start-shortly-at-phoenix-south-3-after-rig-arrives-194193.html Carnarvon Petroleum Limited (ASX:CVN) expects drilling will start at the Phoenix South-3 well on Western Australia's North West Shelf shortly with the rig now at the site.

The GSF Development Driller-1 semi-submersible drilling rig will be anchored in place and ballasted over the next few days.

Phoenix South-3 joint venture partner and project operator Quadrant Energy expects to start drilling around April 10.

READ: Carnarvon Petroleum rig delay only a small hitch ahead of a big year of exploration

The objective of the well is to assess gas and condensate discovered at the top of the Caley interval in the 2017 Phoenix South-2 well.

It will be 560 metres from the Phoenix South-2 well and has been constructed to specifically allow for evaluation of this interval.

Quadrant is targeting an estimated gross mean recoverable prospective resource of 489 million standard cubic feet of gas and 57 million barrels of gas condensate.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover

Carnarvon has a 20% stake in Phoenix South-3 as well as in the Dorado-1 well, where drilling is expected to start in May.

The company is cashed up for its accelerated exploration program, having finished the December 2017 quarter with nearly $50 million in net cash.

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Wed, 04 Apr 2018 09:19:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194193/carnarvon-petroleum-expects-drilling-to-start-shortly-at-phoenix-south-3-after-rig-arrives-194193.html
<![CDATA[News - Carnarvon Petroleum rig delay only a small hitch ahead of a big year of exploration ]]> https://www.proactiveinvestors.com.au/companies/news/193980/carnarvon-petroleum-rig-delay-only-a-small-hitch-ahead-of-a-big-year-of-exploration-193980.html Carnarvon Petroleum Limited (ASX:CVN) expects to start drilling the Phoenix South-3 well on Western Australia's North West Shelf around April 10.

The GSF Development Driller-1 semi-submersible drilling rig is expected to arrive at the site around April 5 after some slight delays.

Transfer of the rig to the site was impeded by cyclone Marcus passing the tow path.

The rig is now in the final stage of its journey from Mauritius to Australia.

A small hitch in a big year

This represents only a minor delay and with multiple share price catalysts at play throughout 2018, many analysts see Carnarvon as undervalued.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover

The objective of the Phoenix South-3 well is to assess gas and condensate discovered at the top of the Caley interval in the 2017 Phoenix South-2 well.

It will be located only 560 metres from the Phoenix South-2 well and has been constructed to specifically allow for evaluation of this interval.

Carnarvon is targeting an estimated gross mean recoverable prospective resource of 489 million standard cubic feet of gas and 57 million barrels of gas condensate.

Brokers unperturbed by delay

Aiden Bradley from Hartleys Research just reassessed the company, taking into account the delay.

He maintained his speculative buy recommendation and price target of 25 cents, reiterating that the company was one of his top picks in the sector for 2018.

READ: Carnarvon Petroleum’s plans get a boost from Australia - East Timor maritime border treaty

Bradley said: “Our rating is based on a combination of an attractive valuation (low enterprise value/barrels of oil equivalent), newsflow, oil price leverage and takeover appeal.”

Bradley’s price target implies upside of nearly 100% to Carnarvon’s closing price of 13 cents on Wednesday.

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Thu, 29 Mar 2018 09:06:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193980/carnarvon-petroleum-rig-delay-only-a-small-hitch-ahead-of-a-big-year-of-exploration-193980.html