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Energy

Carnarvon Petroleum, Quadrant Energy reach 4000 metres at Roc-1 well

Carnarvon Petroleum (ASX:CVN) has provided an update that drilling is progressing at the Roc-1 well offshore Western Australia.

Quadrant Energy is acting as operator, and is a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).

The well has now been drilled to a depth of 4000 metres, with drilling ahead in the 216 mm (8 1/2”) hole section.

The plan is to drill ahead as scheduled to around 4750 metres subject to hole conditions.

The operator has advised that it will not complete an intermediate logging run at a depth of around 4000 metres and will complete logging once the well reaches the total depth.

Roc prospectivity

There are grounds for optimism for Roc-1 well as it is a larger structure than Phoenix South residing in a shallower water depth and a shallower reservoir than Phoenix South.

It is also up-dip to the Phoenix South structure.

Carnarvon and its joint venture partners are targeting a best-case estimate of 42 million barrels of oil at Roc.

This would represent a substantial portion of the larger Phoenix resource, estimated in a best-case scenario to total 104 million barrels of oil over only 5% of acreage held by Carnarvon.

Success at Roc-1 would see the well suspended then re-entry for evaluation and further testing (including flow testing) and coring in the third quarter of 2016.

Equity holders

Quadrant Energy (40%) is operator, Carnarvon holds 20%, with JX Nippon 20% and Finder Exploration 20%.

Spudding of the well has been carried to US$70 million by Quadrant and 20% partner JX Nippon.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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