Carnarvon Petroleum (ASX:CVN) is cashed up with $120 million in liquid assets to support its technically driven approach to oil and gas discoveries in the North West Shelf off Western Australia.
Excitement is building as it draws closer towards drilling in the fourth quarter the high impact Roc-1 well that targets a best case estimated of 42 million barrels of oil.
Notably, this will be carried by Quadrant Energy – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG) – and JX Nippon to US$70 million.
Planning is also underway for the drilling of additional appraisal wells in late 2016 to follow the success of Roc-1.
Adrian Cook, managing director, will present at Proactive's Sydney, Melbourne Investor Luncheons in September.
REGISTER TODAY by clicking on the links below:
Melbourne Investor Luncheon, Tuesday 22nd September.
Sydney Investor Luncheon, Wednesday 23rd September.
Phoenix Oil Discovery
Work is also continuing on assessing the Phoenix South-1 oil discovery that was made in 2014, which opened up the prospectivity of an entirely new hydrocarbon province in Australia and identified a new play concept in the North West Shelf.
This has best estimate resources of 19 million barrels of oil.
Additional data is being acquired and the total 3D seismic set is expected to cover about 45% of Carnarvon’s acreage holding by the end of this year.
Cerberus Blocks
In June, the company identified the Belfon (Upper Permian) and Honeybadger (Early Triassic) prospects at its wholly-owned Cerberus Blocks in the Carnarvon Basin that are estimated to contain significant volumes of recoverable oil.
Honeybadger and Belfon offer low cost drilling in shallow water with shallow depth reservoir targets, providing Carnarvon with significant value for a modest investment.
Besides requiring lower cost jack-up drilling rigs, the reservoirs are also located between 1,000 to 3,000 metres subsea, with the time required to drill down to total depth to test these targets estimated to be between ten to fifteen days.
These factors result in the independently estimated total cost to drill each prospect from as low as US$10 million per well in the current environment.
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