Energy player, Carnarvon Petroleum Limited (ASX: CVN) has drilled to a depth of approximately 1,230 metres Measured Depth in the ongoing drilling of the Dorado-2 well at 17-1/2” hole. This comes after the company commenced drilling of the Dorado-2 well, first appraisal well of the Dorado oil and gas field.
The current exploration work is steering the company’s oil and gas footprints within the Dorado field in the Pilbara Region. This follows the monumental discovery of light oil, gas and condensate in a number of reservoirs on the completion of Dorado-1 well during 1HFY19. On the back of significant nature of the discovery, Carnarvon and its Joint Venture partner Santos Limited decided to appraise the discovery and test the potential of the follow-up prospects, giving birth to Dorado-2 appraisal well.
Dorado-2 is situated ~2.2 kms away from the location of Dorado-1 discovery and ~160 kms north-northeast of Port Hedland (Bedout Sub-basin). In the latest Dorado-2 drilling update, the company announced that 13- 3/8” casing has been set and cemented in place and drilling of the 12-1/4" hole section has been started with drilling operations at ~2,250 metres underway.
Image: Map of WA-437-P showing the Dorado field (Source: Company’s Report)
Carnarvon’s investment in advanced technology and specialised team of professionals is fostering to achieve the company’s objective of unlocking the largest oil field in the North West Shelf of Western Australia.
Specifically, for Dorado-2 well, the company aims to drill the 12-1/4” hole section for about 3,800 metres Measured Depth as planned. It also intends to set a 9-5/8” casing before the 8-1/2” drilling above Caley Member section’s top.
The company has anticipated that no hydrocarbons to be intersected in this drilling section.
Following the Dorado-2 well, the company has planned to move the rig for the drilling of Roc South-1, near-field exploration well, and then send it to Dorado-3 appraisal well.
2019 Drill Program Projections (Source: Company’s Presentation)
Other Recent Discoveries:
Besides Dorado-1, CVN also completed Phoenix South-3 well and has initiated the redevelopment of the Buffalo oil field during the half year ended 31 December 2018.
Image: Business overview of Carnarvon (Source: Company’s Investor Presentation)
Phoenix South-3 well reportedly encountered hydrocarbons in the targeted Caley interval which adds to the Roc gas and condensate field. In addition, Carnarvon is developing its operational readiness and has commenced seeking the relevant approvals to drill the Buffalo East-1 well which is the key first step to redeveloping the oil field.
CVN’s preparations to redevelop the Buffalo oil field underscores the transition of the field to fall under the exclusive jurisdiction of Timor-Leste as a result of the Maritime Boundary Treaty between Australia and Timor-Leste.
The cash balance of the company stood at $93.36 million as at 31 March 2019. This is in comparison to the opening balance of $48.28 million standing at the beginning of the March 2019 quarter.
CVN stock is trading at $0.425 as at 14 May 2019. Over the past 12 months, the stock has given a massive 183.87% return with an upside momentum of 17.33% recorded in the past three months.
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