Carnarvon Petroleum Limited (ASX:CVN) is continuing to progress the drilling of the Phoenix South-3 rig and is currently drilling ahead at 4,352 metres measured depth.
Importantly, the Caley primary target is expected to be intersected at a depth of about 5,360 metres.
The Phoenix South-3 well is on the prolific North West Shelf, off the coast of Western Australia.
The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted closure that was partially penetrated with the Phoenix South-2 well.
Carnarvon’s well will target a closure that is estimated to contain a prospective resource of gas and associated condensate equivalent to 143 million barrels of oil.
READ: Carnarvon Petroleum raises $16 million to assist in redeveloping the Buffalo oil field
Earlier this month, Carnarvon raised $16 million in a placement to facilitate the redevelopment of the Buffalo oil field on the North West Shelf.
Buffalo-10 will be positioned to test new oil in the attic accumulation as well as drill deeper into the oil pool in the field’s previously developed portion.
Expected timing for drilling to start on the first well is between March and September 2019, after the end of the cyclone season.
Notably, the wells are expected to produce an estimated 31 million barrels of oil over five years and revenue has been estimated at around US$2.2 billion.