Quadrant is the operator and holds 80%, with Carnarvon 20%.
The Phoenix South-2 well is located within the WA-435-P exploration permit in the North West Shelf of Australia.
Progress
The well has drilled to around 4,625 metres measured depth in 12 ¼” (311 mm) hole and has drilled through the Barret formation and into the first 50 metres of Hove formation.
Current Operations
The well is currently running wireline logging tools over the Barret formation.
Technical Commentary
The Phoenix South-2 well was drilled through the Barret Sandstone in which strong hydrocarbon shows were observed across good reservoir intersections demonstrating an active petroleum system.
While wireline operations are yet to be completed, preliminary logging data has identified that the Barret Sandstone does not contain a live hydrocarbon column within the fault block intersected by the Phoenix South-2 well.
The Phoenix South Barret oil resource was interpreted to contain two separate fault blocks - the first fault block is where oil was discovered by the Phoenix South-1 well and the second fault block was intersected by Phoenix South-2.
The initial consequence of the above is that it will likely reduce the range of volume estimates in the Barret Sandstone (light oil) in the Phoenix South structure to approximately two thirds of the range advised on 14 November 2016.
The primary target for the Phoenix South-2 well, the Caley Sandstone, is targeting the same gas and condensate that flowed at prolific rates in the nearby Roc-2 well.
This section will be intersected in mid to late December 2016 and the prospectivity of the Caley Sandstone is not affected by the results in the Barret Sandstone.
Forward Plan
Intermediate wireline logging, including pressure testing, will be undertaken across the Barret Sandstone to confirm the interpretation of the preliminary logging data.
Following the wireline evaluation, 9 5/8” casing will be set in the well and drilling will continue in 8 1/2” hole to the primary target in the Caley Sandstone.
The rig is expected to take around 3 to 4 weeks to complete the Barret wireline evaluation, set the casing, drill the final hole to a measured depth of approximately 5,500 metres and evaluate the Caley Sandstone with wireline logging tools
Well-funded
Carnarvon is well-funded with $65 million in cash at the end of September 2016.