Carnarvon Petroleum (ASX: CVN) is continuing to progress work to increase oil production from its Thailand onshore assets.
The company and operator Towngas are working together to complete the water flood development of the WBEXT 1B fault block sandstone.
Carnarvon’s technical team will focus on finalising the subsurface work that includes the sandstone reservoir connectivity assessment and the field production plan. Hardware procurement will follow and equipment installation is anticipated to be completed within eight weeks.
The initial water flood project in the WBEXT 1B involves six wells with a central water injector and five surrounding oil production wells. The average sand thickness for these wells is about 28 metres.
Both companies maintain the fault block is capable of producing up to 800 barrels of oil per day though Carnarvon expects to be able to more accurately predict the volume and timing of these oil flows following completion of the subsurface work.
Talks are also continuing with the Agricultural Land Reform Office regarding six shut-in production wells located on designated ALRO lands.
These wells had produced a total of 200bpd of oil before they were shut-in pending resolution of rights to produce oil.
The first four of 10 wells have already been brought back on production and, following the initial predicted flush flow rates, returned to their previous production profile.
Further work
Towngas is currently processing 100 square kilometres of 3D seismic that it had acquired in late 2012 in the southern part of the L33/43 permit, adjacent to the WBEXT oil fields.
Carnarvon has agreed to work with the operator on data interpretation and prospect identification, which should enable drilling to commence in this area in the fourth quarter of 2013.
The partners have also agreed in principle to two separate drilling programs for the remainder of 2013. These operations are expected to be funded from operating cash flows from the field with the first well expected to spud in May 2013.
Oil field services company Schlumberger has also been engaged to review opportunities to work over a number of existing wells that will include re-perforating to access bypassed oil behind casing, improving reservoir exposure through enhanced penetrations into the surrounding reservoir, and removing wax build up in well bores.
Carnarvon has a 40% interest in these permits.
On Carnarvon’s 100% owned L52/50 concession, the company has sought approval to exchange one well commitment for the acquisition of around 80 square kilometres of 3D seismic.
This is expected to improve the delineation of the Tha Chana prospect identified on 2D seismic data.
Tha Chana has an internally assessed mean potential of 80 million barrels of recoverable oil with the first well expected to spud in the first quarter of 2014.
Carnarvon is in talks with a number of parties regarding a potential farm-out of a portion of its interest in this concession in exchange for an incoming party contributing to the cost of the planned works.
The company had $16.4 million in cash as of 31 December 2012.
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