Carnarvon Petroleum Ltd (ASX:CVN) has outlined that the Outtrim East-1 well is on schedule to commence drilling in June 2016.
A key objective is to test for the presence of hydrocarbons in the Lower Cretaceous Barrow Group sandstones Pyrenees Formation, similar to the Outtrim-1 sequence.
The well is located 970 metres east of the Outtrim-1 well in 95 metres of water with a target interval around 1,400 metres below the sea bed.
The well is expected to take 25 days to complete on a trouble free basis.
The net cost to Carnarvon is expected to be around A$7 million based on its 28.5% interest.
Reinterpretation of 3D seismic data indicates significant pay potential in this proven oil bearing target.
The Noble Tom Prosser rig will drill the well under contract with operator Quadrant Energy, which will test a proven oil play in the area with upside potential.
Adrian Cook, managing director for Carnarvon, commented:
“The Outtrim East-1 well will test the extent of the Outtrim-1 oil discovery and upside potential in new oil charged sands to the north and east of the Outtrim-1 well.
"We are looking forward to completing this well, determining its potential for development, and considering further exploration and appraisal drilling possibilities to enhance the project’s value proposition.
"We are in a very exciting period of time for the company with this well and the Roc-2 appraisal well expected to commence in July 2016 providing significant opportunity for and interest in Carnarvon.
"Positive drilling results from either or both wells have the potential to materially deliver on Carnarvon’s strategic objectives, namely ‘to find and commercialize major oil and gas resources on the North West Shelf (NWS).”
Additional objects of the Outtrim East-1 well include:
- To drill below the oil water contact to Total Depth with log coverage over the zone of interest;
- To evaluate the objective interval for the presence of reservoir and hydrocarbons using quantitative gamma-ray, resistivity, neutron, density, CMR and sonic logs;
- To obtain formation pressures and fluid samples over the hydro-carbon bearing interval; and
- To obtain conventional core over the Pyrenees Formation objective.
Analysis
The Outtrim East-1 well is located to test the extent of the Outtrim-1 discovery and test highly prospective sands to the North and East of the Outtrim-1 well.
Drilling will start in June 2016.
Carnarvon is also expected to commence the Roc-2 appraisal well in July 2016.
Well-funded:
Carnarvon maintains a strong financial position with A$95.5 million in cash, future receivables worth up to US$31.3 million and an A$8 million cost carry on the Roc-2 well, as at the end of March 2016.
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