Carnarvon Petroleum Ltd (ASX:CVN) is continuing to build its portfolio in anticipation of the next oil price cycle.
Carnarvon has now been awarded the WA-524-P permit which is situated on the flanks of the Dampier Sub-Basin, a part of the highly prospective Greater Carnarvon Basin, on Western Australia’s North West Shelf.
This large 1,210 square kilometre permit is located on the Enderby Terrace, which contains a number of untested yet attractive play types in a proven basin which includes the Stag, Wandoo and Legendre oil fields, plus the Reindeer gas field.
Adrian Cook, managing director, commented:
"There are a number of attractive opportunities in this permit that I am confident will become attractive drill prospects in the future.
"This area will benefit from the application of our technical expertise and recent improvements in technology that were not previously available."
Carnarvon remains well-funded with A$87.7 million held in cash at the end of June 2016, plus future receivable up to US$31.3 million and A$8 million well carry.
Industry leader
Carnarvon is recognised as an innovator and industry leader in understanding the deeper plays on the North West Shelf, and has identified great potential within the Permo-Triassic stratigraphy within the newly awarded block.
The success of drilling the Early Triassic play types in the Roebuck Basin is well documented, and Carnarvon has identified through its regional technical work, the potential for a similar pre-Jurassic play on the flanks of the Dampier Barrow Sub-Basin.
Carnarvon has identified three potential leads within the block and aims to de-risk the elements of the play, with a number of geoscience work flows.
Successful exploration in this region would provide attractive returns on investment due to leads being situated in relatively shallow water, located at a moderate reservoir depth and the acreage being near existing services and infrastructure.
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