Carnarvon Petroleum Ltd (ASX:CVN) has completed a busy June quarter in a strong financial position holding $63.6 million cash.
During the quarter, Carnarvon and its joint venture partner Quadrant Energy commenced drilling the Phoenix South-3 and Dorando-1 wells within the offshore Phoenix project.
Quadrant is the operator of the project located offshore Western Australia in the Canning Basin and Carnarvon has a 20%-30% interest.
READ: Carnarvon Petroleum at 3640 metres depth in Dorado-1 offshore well
At the end of the quarter, the Phoenix South-3 well had been drilled down to about 5,165 meters measured depth.
In the coming weeks, the well will test the target Caley reservoir at a depth of about 5,185 metres, where the nearby Phoenix South-2 well encountered hydrocarbons.
At the end of the quarter, the Dorado-1 well had been drilled to a depth of approximately 3,637 metres measured depth.
As with the Phoenix South-3 well, the primary objective of the Dorado-1 well is to assess the gas and liquids potential in the Caley Member.
Dorado-1 is less than 20 kilometres up-dip of the Roc-1 and Roc-2 discoveries with the Roc-2 well also providing a successful flow test, showcasing the reservoir quality in the area.
Preparations commenced to drill the 100% owned Buffalo-10 well
Carnarvon has commenced preparations to drill the Buffalo-10 production well in 2019 targeting the presence of an oil attic.
During the quarter, Carnarvon initiated engagement with contractors and suppliers as part of the Buffalo-10 well planning and field redevelopment.
Notably, Carnarvon owns 100% of this project and an independent cost analysis estimated a total expenditure costs of US$18 to US$21 per barrel.