Carnarvon Petroleum Ltd (ASX:CVN) (28.5%) and partner Quadrant Energy (71.5%) have revealed the potential for a working petroleum system at the Outtrim project on the North West Shelf of Western Australia.
The companies are exploring the Belgravia prospect within the project, adjacent to Woodside Petroleum’s (ASX:WPL) Swell-1 exploration well.
Interestingly, Woodside had intersected interpreted gas sands across a large gross interval of circa 450 metres at Swell-1.
The Swell-1 well result is encouraging in that it has confirmed the presence of a working petroleum system with a large gas column.
Potentially better reservoir quality compared to Swell
Carnarvon’s mapping indicates the crest of the Belgravia structure is updip of the Swell gas discovery and around 650 metres shallower than the Swell-1 structure.
Typically, reservoir quality improves at shallower depths indicating that Belgravia could expect to contain better reservoir quality compared to that reported at Swell.
This is encouraging given that the Belgravia prospect already contains an estimated recoverable 440 billion cubic feet of gas (Bcf) and 18 million barrels (Mmbbls) of condensate.
However, further work is required to fully consider the opportunities arising from the Swell-1 well result, particularly in regards to the consequences for the Belgravia prospect.