Carnarvon Petroleum Limited (ASX:CVN) (FRA:CJB) has increased its equity to 70% and secured operator status of the Outtrim project within WA’s Southern Carnarvon Basin at which it believes there is significant gas potential.
Within the WA-155-P permit are the Belgravia, Belgravia East and Palmerston prospects, which are all Top Triassic Mungaroo gas targets on the North West Shelf.
In same area as Swell-1
This permit is in the same area as Woodside Petroleum Limited’s (ASX:WPL) (OTCMKTS:WOPEF) Swell-1 well from which interpreted gas sands were previously intersected across a large gross interval of about 450 metres.
Whilst being a tight gas discovery, Carnarvon says Swell-1 is encouraging because it confirmed the presence of a working petroleum system, over a large hydrocarbon column, only 20 kilometres from Belgravia prospect.
Shares have been up more than 5% to 20 cents intra-day.
Updip of discovery
Carnarvon’s mapping indicates the crest of the Belgravia structure is updip of the Swell-1 discovery and around 650 metres shallower than the Swell structure.
As reservoir quality typically improves at shallower depths, on face value Belgravia could expect to contain better reservoir quality compared to that reported at Swell.
Top Triassic map of Belgravia and Palmerston prospects. The gas discovery made at Swell-1 by Woodside and Kufpec in 2018 is along trend. The Eagle-1 gas well is planned to be drilled in 2021.
Triassic mapping work
Through recent regional Triassic mapping Carnarvon has also observed that Belgravia could be part of a much larger structure - the Jurabi-Belgravia-Swell (JBS) structure - which has been proven to contain gas based on the down-dip Swell-1 well.
Carnarvon’s assessment reveals that the porosity and reservoir quality within Belgravia and Belgravia East and potentially within the larger JBS structure could be similar to many other Triassic wells in the region and validated in nearby commercial Triassic gas fields.
The Palmerston prospect is also an attractive Top Triassic reservoir structure.
The JBS structure is a >400 square kilometre 1400 metre column structure drilled by Swell-1 gas discovery and earlier Jurabi-1 discovery.
If it can be demonstrated that the average porosity across the JBS structure is even marginally better than that observed in the Jurabi-1 and Swell-1 wells, this would have a beneficial effect on permeability, potentially reclassifying a tight gas discovery into a significant gas field discovery.
Scale similar to other fields
The scale of the JBS structure is similar to other fields on the North West Shelf, and although only around a quarter is within Carnarvon’s permit, the company says “there is considerable potential from what could already be a significant discovery”.
Further work with CSIRO is ongoing to understand the likelihood of improved porosity away from the Jurabi-1 and Swell-1 wells.
Carnarvon plans to mature this project for future farm-out.
A significant commercial gas discovery in this area could be developed as a standalone project with processing via nearby onshore facilities or be developed as part of infill gas for existing nearby LNG and domestic gas projects.