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Carnarvon Petroleum focusing on four key areas

Managing director Adrian Cook has released a letter to shareholders this morning.
pen on letter
The company made a transformational oil and gas discovery at the Dorado well this year

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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Carnarvon Petroleum Ltd Timeline

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