Oil and Gas exploration company Carnarvon Petroleum Limited (ASX: CVN) on 29 April 2019, notified the market that the Noble Tom Prosser jack-up drilling rig started mobilising from the Corvus-2 well location, at 24:00 hours on 26 April 2019. It is at present adjacent to being on the Dorado-2 well location.
The Dorado-2 well is the maiden evaluation of the substantial Dorado discovery where the drill campaign was carried on in the latter half of the last year (as announced on ASX on 18 and 24 July, 8 and 20 August 2018).
The planning of Dorado-2 well is done as a down-dip assessment well, which can outline the hydrocarbon contacts in the Caley, Baxter and Milne Members of the Lower Keraudren Formation. The outcomes derived from the well would be utilized to enhance subsurface certainty and give further comfort that the Dorado structure, has enough hydrocarbons to aid in the development.
The Dorado-2 well is based around 160 km north-northeast direction of Port Hedland, Bedout Sub-basin. The drilling work has been carried out for roughly 95 metres water depth with the Dorado-2 location for circa 2.2 km from the Dorado-1 region.
After the Dorado-2 well, the rig is planned for the drilling of the adjacent-field exploration well Roc South-1 (announced on 29 January 2019). Post that, the Dorado-3 evaluation well would conclude the 2019 drilling campaign, which is targeted towards providing an aid in the development work.
CVN’s managing director, Mr. Adrian Cook, said that the company anticipated the drilling campaign of this year to be the most substantial in the CVN’s history with 3 important well to solidify the case for considerable development of oil and gas.
Dorado and Roc South, both are in WA-437-P in which CVN has a 20 percent stake.
In its April 2019, Investor Presentation, the company provided an overview of its projects as following:
- Dorado (world class discovery).
- Roc (appraised Dorado tie back).
- Roc South (exploration also near Dorado).
- Buffalo (separate oil field redevelopment).
The company had also released an investors’ presentation in March 2019.
In its quarterly cash flow report for the period ended on 31 March 2019, the company mentioned the net cash used in operating activities during the period was at A$1,808k. The Net cash from financing activities was noted at A$47,189k. The cash and cash equivalents at the end of the period was recorded at A$93,358k.
During the March quarter period, the company and its Joint Venture partner Santos Limited (ASX: STO), substantially progressed to evaluate the world-class Dorado discovery.
On the capital matters front, CVN had concluded an A$50m (before fees) placement to institutional and sophisticated investors in the quarter period. This capital raising has obtained substantial interest and would further make sure that CVN has a strong financial position for the awaited 2019 exploration and appraisal program.
CVN has further concluded its discussions with the Government of Timor-Leste about the Production Sharing Contract. With the fundamental terms of the Production Sharing Contract agreed in principle, the company now is waiting for the completion of the Maritime Boundary Treaty between the Governments of Australia and Timor-Leste. During the period, CVN also progressed its strategy of redeveloping Buffalo oil field, along with the submission of exploration and appraisal drilling plans to government authorities.
The exploration expenditure in the March quarter stood at A$1.2 million comprising of technical work, planning and long lead items for the 2019 Dorado and Roc South drilling campaign and preparatory work on the Buffalo oil field redevelopment project.
The stock of the company is currently trading at A$0.457 (as on 29 April 2019, 3:05 PM AEST), up by 1.556%.
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