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

Multiple highly attractive development projects in shallow water on the North West Shelf of Western Australia.
drill rig
The company believes there is potential to add to the resource

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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Carnarvon Petroleum Ltd Timeline

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