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Energy

Carnarvon Petroleum expects drilling to start shortly at Phoenix South-3 after rig arrives

The semi-submersible drilling rig will now be anchored in place and ballasted.

Carnarvon Petroleum Limited (ASX:CVN) expects drilling will start at the Phoenix South-3 well on Western Australia's North West Shelf shortly with the rig now at the site.

The GSF Development Driller-1 semi-submersible drilling rig will be anchored in place and ballasted over the next few days.

Phoenix South-3 joint venture partner and project operator Quadrant Energy expects to start drilling around April 10.

READ: Carnarvon Petroleum rig delay only a small hitch ahead of a big year of exploration

The objective of the well is to assess gas and condensate discovered at the top of the Caley interval in the 2017 Phoenix South-2 well.

It will be 560 metres from the Phoenix South-2 well and has been constructed to specifically allow for evaluation of this interval.

Quadrant is targeting an estimated gross mean recoverable prospective resource of 489 million standard cubic feet of gas and 57 million barrels of gas condensate.

READ: Carnarvon Petroleum enters 2018 with multiple share price catalysts including the prospect of a takeover

Carnarvon has a 20% stake in Phoenix South-3 as well as in the Dorado-1 well, where drilling is expected to start in May.

The company is cashed up for its accelerated exploration program, having finished the December 2017 quarter with nearly $50 million in net cash.

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