Carnarvon Petroleum (ASX: CVN) is working with the new operator of its three Thailand petroleum concessions to develop an Oil Development Plan covering the multiple sandstone and the fractured volcanic reservoirs.
While the plan will be continually refined, Hong Kong and China Gas Company’s wholly-owned subsidiary ECO Environmental Investments (ECO) and Carnarvon plan to initially target the Wichian Buri sandstone, Wichina Buri Extension sandstone, Si Thep sandstone and the WBV1 and WBV2 volcanic within the WBEXT area.
Drilling of up to 15 wells has now recommenced in the L44/43 concession with the initial wells appraising the recently discovered NS-4A sandstone, and WBEXT WBV1 and WBV2 volcanic.
The joint venture has also received confirmation of the WBEXT environmental approvals and drilling of the WBEXT “E” sand development is anticipated to start following the L44/43 appraisal program.
ECO had bought Pan Orient Energy's (TSX: POE) 60% stake in L44/43, L33/43 and SW1 for US$179 million (A$173.5 million).
This had valued Carnarvon’s stake in the project at about US$113 million, or US$0.16 per share, well above Gaffney, Cline & Associates’ assessed value for the proved reserves net to Carnarvon of US$84 million.
Carnarvon holds certified 1P reserves of 3.8 million barrels (MMbbl) of oil with upside probable and possible reserves of 8.3MMbbl and 10.5MMbbl respectively.
ECO operates liquefied petroleum gas filling stations in Hong Kong and is developing landfill gas utilisation projects and a permanent aviation fuel storage facility for the Hong Kong International Airport
It is also involved in a joint venture with Sinopec in Jilin Province; unconventional gas developments in Guizhou and Shanxi provinces; and exploration in Madagascar.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.